MSTR Stock Up 40% in a Month, but Ross Gerber Still Calls Michael Saylor the 'Worst Thing' to Happen to Bitcoin: Here's Why

Veteran investor Ross Gerber accused Michael Saylor of putting the entire Bitcoin (CRYPTO: BTC) market at risk through the approach taken by his firm, Strategy Inc. (NASDAQ:MSTR).

Gerber Slams Saylor's Playbook

In an exclusive chat with Benzinga, Gerber said Strategy's tactic of selling MSTR at a high premium to buy "cheaper" Bitcoin worked in the bull market but started to "unwind" in the bear market.

"So now he's [Saylor] created a reverse situation. What was working for him all those years now works against him," the CEO of Gerber Kawasaki Wealth and Investment Management argued.

Strategy shares have historically traded at a premium, meaning the stock price values the company higher than the BTC on its balance sheet. However, when the stock trades at a discount, the company's ability to raise capital by selling new shares slows down, since it becomes dilutive.

This is exactly what happened in recent months. Strategy paused Bitcoin buying entirely and focused on cleaning up its balance sheet. It even offloaded some of its BTC to bolster its dollar reserves.

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