Arthur Hayes says Michael Saylor’s MicroStrategy will be in trouble when Bitcoin volatility drops — I wouldn’t trade MSTR at all – MicroStrategy (NASDAQ:MSTR)

Arthur HayesCo-Founder of Cryptocurrency Exchange Bitcoin exchange and chief investment officer Vortex Funddefamation microstrategy Magnetic transmission technology debt driven Bitcoin Bitcoin/USD Buying strategies that anticipate challenging times for companies when top cryptocurrencies lose volatility.

what happened: In an interview with Benzinga, Hayes slammed MicroStrategy’s volatility monetization strategy, which includes issuing convertible bonds and other fixed-income securities to buy Bitcoin.

“What makes these instruments attractive is the volatility of the stocks and Bitcoin they buy,” Hayes said.

Bitcoin has experienced a record-breaking run, rising nearly 50% in the past three months, helped by Donald Trump’s Presidential victory. The rally created extreme upside volatility Michael SeilerMicroStrategy is better known for its Bitcoin product portfolio rather than its core software business. The stock has gained 62% in the past three months.

However, Hayes warned that the situation may not remain the same. “When Bitcoin’s volatility decreases, most likely after a major crash, MSTR will have a hard time attracting interest in this type of debt. At that point, the game is over.

The Bitcoin bull said he wouldn’t trade MSTR stock at all and believes there are “better” ways to go long or short Bitcoin.

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Why it’s important: Hayes’ comments heightened concerns about MicroStrategy’s Bitcoin purchases.

famous economist Peter Schiff It previously said the company’s commitment to repay convertible note holders could be at potential risk if the value of Bitcoin falls significantly.

Martin ShkreliPopularly known as the “pharmaceutical brother,” he even called the show a “big bubble,” adding that he lacked MicroStrategy.

However, Anthony ScaramucciInvestment Company CEO Tianqiao CapitalSupporting this strategy, claims that Bitcoin’s decline will force the company to liquidate its reserves are exaggerated.

price action: As of this writing, Bitcoin is trading at $93,573.37, down 0.90% in the past 24 hours, according to Benzinga Pro.

MicroStrategy’s shares rose 1.14% to $327.91 in regular trading on Friday. Based on ratings from 12 analysts, the stock has a consensus price target of $449.5, with an average price target of $546.67 Bernstein, TD Cowanand barclays bank.

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