Arthur Hayes Says Strategy’s Bitcoin Model May Be Losing Viability

BitMEX co-founder Arthur Hayes said Strategy’s financial engineering model may be losing viability as slower Bitcoin price growth weakens the mechanism underpinning the company’s approach. He said the shift may force founder Michael Saylor to choose among issuing additional shares, selling Bitcoin, or halting dividend payments.

At the center of Hayes’ argument is the premium attached to Strategy shares. He said MSTR has lost its previous influence and no longer has a justification for trading above the value implied by its Bitcoin holdings, warning that the company’s strategy would stop working if that premium disappeared.

Hayes said the shrinking premium also weakens the case for using MSTR as a stock-market route to Bitcoin exposure. Rather than investing through Strategy, which he said relies heavily on one individual retaining full control, Hayes argued that investors can gain more direct exposure through a spot Bitcoin ETF. 

He cited BlackRock’s IBIT as an example, saying such an ETF represents a more rational choice for investors seeking Bitcoin exposure through traditional markets without relying on Strategy’s premium-dependent model.

Source: Unchained (via Wu Blockchain)