Notable venture capitalist Jason Calacanis has raised doubts about whether the current valuation of Bitcoin is genuinely supported by Michael Saylor’s acquisition strategy.
According to U.Today, Saylor’s company recently revealed an astonishing purchase of 34,164 $BTC, totaling $2.54 billion. This brings their overall Bitcoin holdings to a remarkable 815,061 $BTC, marking it as the third-largest Bitcoin acquisition recorded so far.
A Potential $20,000 Increase?
Calacanis posed a thought-provoking question to the AI bot Grok regarding what Bitcoin’s price would be today if Michael Saylor had not invested over $61 billion into the market since 2020.
The AI concluded that without Saylor’s substantial buying activity, Bitcoin could potentially be valued between $10,000 and $20,000 less than its current price of $75,525.
This phenomenon known as the “whale effect” is precisely what concerns Calacanis. He has consistently argued that Saylor’s company’s complex financial structure creates an artificial support level for Bitcoin prices.
The firm employs a sophisticated at-the-market (ATM) equity offering program to facilitate its acquisitions.
As highlighted by U.Today, Calacanis has famously remarked that he wouldn’t invest in MSTR stock “with a ten-foot pole,” even during market downturns. He cautioned against any potential “Bitcoin bailouts,” should the company’s heavily leveraged strategy falter.
Nonetheless, some critics have challenged both Calacanis’s logic and Grok’s analysis. One user pointed out that this line of reasoning assumes buyers funding these purchases wouldn’t opt for direct acquisitions themselves if given an easier option without custody risks associated with them.