Strategy, co-founded by Michael Saylor, came to the fore with an unrealized loss of approximately $10.8 billion in Bitcoin positions. This loss, reflected in the company’s balance sheet, started a new debate in both traditional financial circles and the cryptocurrency market.
Criticism became harsher on social media
CNBC presenter Jim Cramer asked a question directly targeting Bitcoin in his post on the X platform. Cramer: “Who killed Bitcoin?” He used the statement and further fueled the debate after the recent price movements.
Investor Peter Schiff, who has long been known for his anti-Bitcoin views, also joined the criticism. Schiff argued that the current price movement cannot be seen as a normal fluctuation and suggested that investors are selling Bitcoin to avoid larger losses or turn to more attractive opportunities.
Peter Schiff argued that this is not ordinary volatility, investors are exiting Bitcoin to avoid bigger losses or turn to better opportunities; He argued that this situation meant a rejection of Michael Saylor’s investment thesis.
The first sale attracted attention
At the center of the discussions was the fact that the company had recently sold 32 Bitcoins, despite the “never sell” approach it has adopted for many years. Although this amount was limited compared to total assets of approximately $ 54 billion, it was closely watched as it was the first sale recorded since the end of 2022.
Strategy is known as one of the companies that stands out in the market with its structure that focuses on the Bitcoin treasury model from software activities. Michael Saylor has also been among the most visible advocates of institutional Bitcoin purchases in recent years.
Leveraged savings model is being discussed
Traditional financial commentators are now questioning whether the company’s Bitcoin accumulation model, backed by debt and equity issuance, is backfiring. Investment advisor Ross Gerber also harshly criticized the latest move and claimed that it was a market shock driven by greed.
Schiff, on the other hand, argued that Strategy had to constantly create new resources in order to continue its new Bitcoin purchases. According to him, the company is forced to continue buying to prevent the price from falling further while others are selling.
According to Schiff, the real risk becomes evident in a scenario where the company cannot issue new shares; In this case, it is claimed that Strategy’s capacity to buy more Bitcoin may weaken and the structure it has established may come under pressure.
Share issuance and investor confidence came to the fore
Schiff stated that if Strategy shares were traded at a discount, it would be difficult for the company to sell new shares under conditions close to nominal value. According to this view, such a situation could both limit financing opportunities and put pressure on investor confidence.
While there was no new response from the company regarding these criticisms, the unrealized loss of approximately 11 billion dollars and the sale of 32 Bitcoins brought the discussions about Strategy’s market approach to the fore again.
