Gerber Warns Strategy's Bitcoin Leverage Could Trigger a Selloff
MSTR sits 15% above its 52-week low of $81.81 on light trading volume (0.2× avg).
Summary
Ross Gerber, CEO of Gerber Kawasaki, publicly attacked Strategy's leveraged Bitcoin model, warning that forced selling could 'nuke' Bitcoin. He questioned why investors would accept diluted equity exposure at a 1.61x premium to Bitcoin holdings, calling the equity-for-Bitcoin strategy 'crazy bad math.' Strategy countered that its perpetual preferred stock structure insulates it from forced liquidation even in an 80% drawdown. The company now holds 629,376 BTC worth over $72B after adding 430 BTC for ~$51.4M, yet its stock has lagged Bitcoin's price performance. This follows a period of halted Bitcoin purchases and a securities probe, adding to bearish sentiment around the stock.
At the time of this announcement, MSTR was trading at $94.48 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $36.3B. The 52-week trading range was $81.81 to $372.62. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: CryptoNews.