Popular Tesla investor warns Saylor’s Bitcoin model 'destroys value'

Core Viewpoint - There is increasing skepticism regarding Michael Saylor's Bitcoin strategy, particularly from investors like Ross Gerber, who criticize the business model of treating Bitcoin as a primary asset for the company [1]. Group 1: Company Financial Developments - Strategy announced the creation of a $1.44 billion USD reserve to support dividend payments and service debt obligations, financed through an at-the-market stock offering [2]. - The company's market-implied net asset value (mNAV) has dropped to approximately 1x, indicating that the stock is trading nearly at the value of its Bitcoin holdings without any premium [3]. Group 2: Risks and Business Model - A mNAV of 1 carries risks of creating a false sense of stability, as investors may believe their investments are secure at $1, but underlying asset devaluation could lead to panic redemptions [4]. - Strategy has shifted from being a traditional software and business-intelligence company to a Bitcoin holding vehicle, raising capital primarily to purchase Bitcoin, which ties the company's value closely to Bitcoin's performance [5].