Crypto Fund Founder Highlights Dangers in MicroStrategy’s Bitcoin Approach

Founder of North Rock Digital, Hal Press, criticized MicroStrategy’s Bitcoin acquisition strategy, saying the company will eventually have to sell all the BTC it acquired.

According to Press, the business model is unsustainable as “every single one of Saylor’s coins will need to be sold.” He added that “when the time eventually comes it will be a career-making short.”

The crypto-focused hedge fund founder noted that this wouldn’t happen anytime soon and would take a minimum of a few years at least. Press further noted that there is a good chance that Michael Saylor’s BTC bet could be profitable in the future.

He added:

“The idea of taking a software company and levering it to the gills to run a “Bitcoin acquisition strategy” is so comically stupid it’s actually quite funny. Will be so obvious in hindsight.”

Would ETH Have Been a Better Investment?

Press’ opinion generated diverse views, with some arguing that MicroStrategy’s BTC acquisition could backfire. Others argued that the firm should have heavily invested in Ethereum instead.

A comparison page tracking MicroStrategy BTC purchase if it had been ETH shows that the company would have 3.68 million ETH by now. The ETH would be worth $6.883 billion compared to its BTC holdings’ valued at $3.926 billion.