Top Investor Warns MicroStrategy’s Bitcoin Buying Could Backfire

Jason Calacanis, one of the world’s most successful angel investors, is sounding the alarm about MicroStrategy’s relentless Bitcoin buying spree. He’s worried the company’s approach could end up hurting the cryptocurrency’s appeal.

Recently, Barron’s reported that MicroStrategy shareholders are preparing to vote on a plan to increase the company’s authorized common stock to over 10 billion shares. In theory, this could give the firm the ability to buy up every Bitcoin in existence at current prices—a scenario that’s more hypothetical than realistic.

Michael Saylor, MicroStrategy’s co-founder and a well-known Bitcoin advocate, laughed off the idea on social media, joking that he gets his best ideas from Barron’s. But Saylor has made no secret of his ambitions: he’s talked about wanting to hold $3 trillion worth of Bitcoin and believes MicroStrategy’s market cap could eventually hit $10 trillion.

Calacanis, however, isn’t buying the hype. He’s concerned that MicroStrategy’s outsized influence in the Bitcoin market could turn people away. “If Saylor ends up owning too much Bitcoin, new investors might feel like they’re just playing his game,” he said. “And if that happens, they’ll look for something else to invest in.”

With a staggering $43.4 billion worth of Bitcoin already under its belt, MicroStrategy is by far the largest corporate holder of the cryptocurrency. For Saylor, it’s a bet on the future. For skeptics like Calacanis, it’s a risky gamble that could have unintended consequences for Bitcoin’s growth.