Strategy has spent years aggressively buying Bitcoin, pitching the move as a long-term, high-conviction bet, but critics say that the approach has crossed from bold into reckless.<\/p>\n
Popular analyst Doctor Profit, for one, drew parallels to the dot-com bubble, while warning that the firm risks repeating history amid today\u2019s AI-fueled frenzy.<\/p>\n
In a recent post on X, Doctor Profit stated<\/a> that he repeatedly expressed his concerns with Strategy\u2019s co-founder, Michael Saylor, that nonstop Bitcoin accumulation, financed and backed by issuing company shares, was \u201cplaying with fire.\u201d According to the analyst, those warnings were dismissed and even mocked.<\/p>\n He pointed out that since then, Strategy\u2019s share price has fallen by roughly 75% from its highs, while Bitcoin itself is down 50% from its peak. With Saylor\u2019s reported average BTC entry around $76,000 and the asset trading near $63,000, the position sits roughly 17% below cost.<\/p>\n Doctor Profit also argued that, despite accumulating since 2020, the company has never realized meaningful profits or executed serious strategic selling. Meanwhile, its stock has suffered a substantial drawdown, exposing shareholders to extreme volatility with little relief.<\/p>\n Looking back at past cycles, Doctor Profit said Saylor\u2019s experience during the 2000 dot-com collapse offers a warning. He explained that intense excitement surrounding AI today may be creating a similar late-cycle setup, increasing the chance of history repeating itself by 2026.<\/p>\n Rather than de-risking as these signals emerged, Doctor Profit claimed that the executive chairman doubled down, increasing exposure while ignoring red flags.<\/p>\n \u201cI truly wish MSTR and Saylor the best, but I cannot understand how reckless this trading approach is in such a late-cycle environment. Markets reward discipline, not blind belief in Bitcoin. There is always time to buy and time to sell. I hope he will listen next time instead of mocking my warnings.\u201d<\/p>\n The fresh concerns come against the backdrop of Strategy\u2019s latest Bitcoin purchase, which is smaller than its past billion-dollar buys but consistent with its long-standing accumulation plan. The firm spent<\/a> just under $40 million to acquire 592 BTC at an average price of $67,286, which pushed its total holdings to 717,722 BTC.<\/p>\n The purchase was funded through equity sales. Nearly 298,000 Class A shares were sold via the firm\u2019s at-the-market program over the past week, according to an update cited by Walter Bloomberg. Strategy still has substantial capacity to raise more capital through future ATM sales, as $37.4 billion in securities remain available, including MSTR and STRK stock.<\/p>\n As Bitcoin\u2019s price decline deepened, earlier warnings from Michael Burry and Zac Prince drew fresh attention to the fragility of BTC treasury business models. For instance, Burry recently said<\/a> BTC\u2019s drop increases the risk of broader stress across crypto and related financial markets. \u201cThe Big Short\u201d investor had said that further downside could severely impact companies that accumulated Bitcoin at higher prices, potentially leaving firms like Strategy billions underwater and cut off from capital markets.<\/p>\n Former BlockFi CEO, Prince, also questioned the sustainability of BTC treasury models, saying they rely on financial engineering rather than core business fundamentals and may struggle to justify valuations without real operating revenue.<\/p>\n The post Market Expert Draws Dot-Com Parallels to Strategy\u2019s Massive Bitcoin Bet<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Strategy has spent years aggressively buying Bitcoin, pitching the move as a long-term, high-conviction bet, but critics say that the approach has crossed from bold into reckless. Popular analyst Doctor Profit, for one, drew parallels to the dot-com bubble, while warning that the firm risks repeating history amid today\u2019s AI-fueled frenzy. Blind Faith vs Market […]<\/p>\n","protected":false},"author":0,"featured_media":137596,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-137595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/137595"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=137595"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/137595\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/137596"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=137595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=137595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=137595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Billions at Risk<\/h2>\n