Strategy, the company co-founded by Michael Saylor, has come under the spotlight after reporting an unrealized loss of approximately $10.8 billion on its Bitcoin holdings. This substantial loss, reflected directly in the company’s latest balance sheet, has reignited debate in both traditional financial circles and the wider cryptocurrency market.
Social media criticism intensifies
CNBC host Jim Cramer fueled the conversation online by directly questioning Bitcoin’s resilience. In a pointed post on X, Cramer wrote, “Who killed Bitcoin?”—fanning the flames of controversy following the recent price swings.
Longtime Bitcoin critic and investor Peter Schiff also joined the discussion. Dismissing the latest price movements as routine volatility, Schiff argued that investors were selling Bitcoin to avoid larger losses or chase potentially more attractive opportunities elsewhere.
Peter Schiff maintained that the situation went beyond mere market fluctuations, insisting that investors exiting Bitcoin were effectively rejecting Michael Saylor’s longstanding investment thesis.
First sale attracts attention
Central to the ongoing debate is the company’s decision to sell 32 Bitcoins in recent weeks, despite its much-publicized “never sell” mantra stretching back years. While this amount is small relative to its nearly $54 billion in total assets, its significance lies in being the first sale since the end of 2022—making it closely watched by the market.
Strategy has distinguished itself as one of the few companies to shift from a traditional software business model to aggressively accumulating Bitcoin as a treasury asset. Michael Saylor has, in turn, become one of the corporate world’s most visible advocates for institutional Bitcoin purchases.
Leveraged accumulation model questioned
Some traditional finance commentators are now questioning whether the company’s leveraged approach—funded by both debt and equity—has reached a tipping point. Investment advisor Ross Gerber sharply criticized the recent developments, calling them market tremors caused by unchecked greed.
Schiff, meanwhile, argued that Strategy is under constant pressure to find new sources of capital to keep buying Bitcoin. According to him, the firm needs to continue purchasing to help prop up prices when other investors are selling.
Schiff believes the true risk emerges if the company becomes unable to issue new shares. In that scenario, Strategy’s capacity to acquire more Bitcoin could be severely hampered, placing its entire business structure under stress.
Equity issuance and investor confidence take center stage
Schiff further observed that if Strategy shares begin trading at a discount, issuing new shares close to nominal value could become difficult for the company. According to him, such a development could limit the firm’s access to fresh financing and undermine overall investor confidence.
Strategy has so far not directly responded to these criticisms. However, the reporting of nearly $11 billion in unrealized losses and the recent 32 Bitcoin sale has placed the company’s entire Bitcoin accumulation strategy under renewed scrutiny.
