An influential analyst has criticized MicroStrategy‘s perpetual Bitcoin acquisition strategy as “reckless,” drawing parallels to the dot-com bubble and warning of late-cycle risks. Despite repeated cautions, the company has continued its equity-financed buying spree, with its stock price down significantly from its highs and its Bitcoin holdings currently valued below its reported average purchase price.
Popular analyst Doctor Profit has warned that MicroStrategy‘s continuous Bitcoin buying is a “reckless” trading approach. He compared it to the 2000 dot-com bubble, suggesting a similar late-cycle setup may be forming amid today’s AI-fueled market frenzy.
Doctor Profit stated he previously warned Executive Chairman Michael Saylor that nonstop accumulation financed by issuing company shares was “playing with fire.” He said those warnings were dismissed and even mocked by the executive.
Since then, MicroStrategy‘s share price has fallen roughly 75% from its highs. The company’s reported average Bitcoin entry is around $76,000, while the asset currently trades near $63,000, putting its position roughly 17% underwater.
Doctor Profit argued that MicroStrategy has never realized meaningful profits through strategic selling. “I truly wish MSTR and Saylor the best, but I cannot understand how reckless this trading approach is in such a late-cycle environment,” he said.
The company recently spent just under $40 million to acquire 592 more Bitcoin. This purchase was funded through its at-the-market equity sales program, continuing its long-standing accumulation plan.
The strategy has drawn scrutiny from other market observers. Investor Michael Burry warned that a further price drop could severely impact companies that accumulated Bitcoin at higher prices. Former BlockFi CEO Zac Prince questioned the sustainability of such BTC treasury models, which rely on financial engineering over core business fundamentals.
