MicroStrategy hits $40b in Bitcoin, Saylor draws criticism

A leading investment expert has expressed concerns about MicroStrategy’s aggressive Bitcoin accumulation strategy, even as the company’s assets have reached $40.01 billion.

The warning came as the company’s portfolio showed unrealized gains of 70.35% ($16.52 billion) based on total investment.

Gavin Baker, managing partner and chief investment officer of Atreides Management LP, highlighted potential risks in MicroStrategy’s debt-led Bitcoin (BTC) acquisition strategy in a recent All-In Podcast appearance.

MicroStrategy’s BTC holdings: SaylorTracker

The company led by Michael Saylor has accumulated 402,100 BTC. Baker specifically warned of the growing disparity between MicroStrategy’s $400 million annual revenue and rising interest expenses from its Bitcoin-backed debt.

“No tree grows all the way to the sky,” Baker warned. He suggested that the strategy of constantly lending money to buy Bitcoin could become unsustainable if debt investors lose confidence in the approach.

Baker’s concerns center on the potential collapse of what he calls the “magic money-creating machine.” If Saylor’s strategy grows too large relative to MicroStrategy’s core business capabilities, overcollateralization could lead to major risks to the company’s financial stability.

Saylor continues to accumulate Bitcoin

Despite these warnings, Saylor remains committed to Bitcoin accumulation. In a recent Yahoo Finance interview, he reaffirmed his four-year-old consistent message: “Every day for the last four years, I’ve said buy Bitcoin, don’t sell Bitcoin. I will buy more Bitcoin. “I will buy Bitcoin at the top forever.”

Saylor advocates a long-term investment approach. He suggested investors consider Bitcoin as a capital asset with a holding period of at least four years, preferably ten years. He also talked about the importance of dollar-cost averaging and maintaining perspective during short-term market volatility.

The MicroStrategy chairman further defended his strategy by highlighting the company’s success in creating shareholder value through its BTC assets. “MicroStrategy makes a lot of money by holding this digital asset. We get a lot of shareholder value out of it.”

Different perspectives on MicroStrategy’s strategy are emerging as BTC reaches new milestones and recently surpassed $100,000, reaching $103,900.