When Bitcoin Whales Attack: MicroStrategy’s Tragicomic Saga 🐳💰

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Oh, the irony! MicroStrategy, once a proud tech titan, now faces the wrath of economist and gold aficionado Peter Schiff. Schiff, with a smirk 😏, criticizes the company’s Bitcoin-centric strategy, as its stock price plummets like a stone in the sea 🌊. Rising debt and Bitcoin’s downward spiral are to blame, or so Schiff claims.

MicroStrategy’s Plunge and Bitcoin’s Descent

As per Schiff’s tweet, MicroStrategy – renamed “Strategy” for a fresh start – has seen its stock price plummet over 55% since November 2024. On March 10, the stock took another hit, dropping 10% as Bitcoin’s price tumbled to $77,800.

The decline followed the White House crypto summit, where President Trump’s executive order on the Strategic Bitcoin Reserve failed to include immediate government Bitcoin purchases. MicroStrategy, undeterred, holds onto its 499,096 BTC, purchased at an average of $66,423 per coin. Its Bitcoin stash is worth about $41 billion, but its fate is tied to Bitcoin’s whims.

Bitcoin Whales: Accumulating or Devouring?

Santiment reports that large Bitcoin holders, aka “whales” and “sharks,” are influencing price movements. Despite recent drops, wallets with 10+ BTC have amassed nearly 5,000 BTC since March 3.

“Long liquidations have wiped out many leveraged traders, causing a sell-off,” Santiment notes. “But whales have started accumulating quietly, a potential bullish sign if the trend continues.” Bitcoin’s price struggles due to market liquidations, regulatory changes, and macroeconomic worries.

Schiff’s Debt Dilemma

Schiff, ever the critic, warns of MicroStrategy’s debt, a ticking time bomb. If Bitcoin’s price doesn’t skyrocket, the company might struggle to pay its debts.

“When the debt comes due, all that Bitcoin must be sold. Chances are, the sale won’t raise enough cash to repay the debt. That means MSTR goes bankrupt,” Schiff tweets.

MicroStrategy’s recent $21 billion ATM offering of Series A Perpetual Strike Preferred Stock is met with skepticism by Schiff.

“I doubt you can pull this off. Soon $MSTR will trade below its Bitcoin holdings. Selling shares will produce a negative Bitcoin yield,” he adds.

Defenders of the Faith

Despite Schiff’s dire warnings, MicroStrategy’s Bitcoin strategy has its defenders. Some argue that the company has benefitted greatly from its investment.

“The strategy isn’t working? MSTR is still up massively since starting this Bitcoin buying spree,” one user counters.

Another compares MicroStrategy’s decline to Tesla’s stock performance, suggesting, “Tesla is down 50% too; clearly, Tesla needs a new strategy. Time to fire Elon (based on idiot logic).” Schiff dismisses the comparison, insisting that Tesla isn’t on the brink of bankruptcy, unlike MicroStrategy.

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2025-03-11 05:28