Michael Saylor’s MicroStrategy Will Struggle When Bitcoin’s Volatility Falls, Says Arthur Hayes — I Would Not Trade MSTR At All
Arthur Hayes, co-founder of cryptocurrency exchange BitMEX and Chief Investment Officer at Maelstrom Fund, cast aspersions on MicroStrategy Inc.’s (NASDAQ:MSTR) debt-powered Bitcoin (CRYPTO: BTC) buying strategy, forecasting challenging times for the firm when the top cryptocurrency loses volatility.
What happened: In an interview with Benzinga, Hayes slammed MicroStrategy’s volatility monetization play, which includes issuing convertible debt and other fixed-income securities to buy Bitcoin.
“The reason why these are attractive instruments is because the stock and the Bitcoin they purchase, are volatile,” Hayes said.
Bitcoin has experienced a record-breaking run, rising by almost 50% in the last three months, helped by Donald Trump’s presidential victory. The rally has caused extreme upside volatility in Michael Saylor’s MicroStrategy, known more for its Bitcoin portfolio than the core …
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