Warning from Jason Calacanis
Jason Calacanis, a notable figure in the angel investment arena, has issued a strong warning to investors regarding Michael Saylor’s firm, Strategy, which was formerly known as MicroStrategy. Calacanis suggests that instead of investing in Strategy, individuals would be better served simply by gaining exposure to Bitcoin directly. This caution comes amid his previous critiques of Strategy, as he believes the firm is underperforming when compared to its net asset value (NAV).
Concerns Over Bitcoin Investment
The early investor in Uber has voiced concerns that Saylor’s heavy investment in Bitcoin could potentially harm the cryptocurrency’s brand integrity. In a recent post on social media, Calacanis advised against investing in Strategy stock, labeling it as “complicated, layered, and you lose control” — a stark indication of his apprehension regarding the complexities surrounding the investment.
Strategy’s Bitcoin Holdings and Market Position
Currently, Strategy boasts a staggering Bitcoin reserve of 638,460 coins, valued at approximately $74 billion. However, the company faced a notable setback earlier this month when it was not included in the S&P 500 index. Despite Saylor’s remarks indicating that the firm did not expect to qualify during its initial eligibility period, analysts from JPMorgan have characterized this exclusion as a significant blow to the company.
Implications of S&P 500 Exclusion
This exclusion could have implications for how other index providers perceive Strategy and its stocks. Inclusion in the S&P 500 would typically bring advantages such as increased buying pressure from index funds, enhanced liquidity, and improved acceptance among institutional investors, ultimately expanding its appeal to a broader group of potential investors.
