Investment Advice on Bitcoin
In a recent statement, noted Uber investor Jason Calacanis advised those interested in Bitcoin to invest in the cryptocurrency itself rather than purchasing shares of MicroStrategy (MSTR). Calacanis, who has been vocal about his skepticism regarding MicroStrategy, estimates that there is a 75% likelihood that his perspective will prove correct in the future.
MicroStrategy’s Position
Reports indicate that MicroStrategy CEO Michael Saylor has urged investors to steer clear of his company, suggesting they maintain a distance from its stock. MicroStrategy, which is recognized for its substantial Bitcoin holdings totaling 639,835 coins, has seen its stock price drop by 35% from a high of $457.
Criticism and Valuation Concerns
Critics, including prominent short-seller James Chanos, have long highlighted that the company’s valuation does not align with its net asset value (NAV), arguing that it is overpriced. Additionally, MicroStrategy’s recent announcement about its equity issuance policy is expected to hinder its capacity to purchase more Bitcoin moving forward.
Challenges Ahead
The company faced further challenges in early September when it was excluded from the S&P 500 index. Despite Saylor’s efforts to mitigate concerns about this setback, experts at JPMorgan foresee potential negative repercussions not only for MicroStrategy but also for other firms that hold Bitcoin treasuries.
