Scaramucci Defends MicroStrategy’s Bitcoin Strategy, Predicts Long-Term Growth of Cryptocurrency – MicroStrategy (NASDAQ:MSTR)

Anthony Scaramuccifounder Tianqiao Capitaleliminating the surrounding Michael Seiler and MicroStrategyhinting at concerns about potential collapse Bitcoinof Bitcoin/USD Volatility is exaggerated.

What happened: In an interview Friday, Scaramucci pointed to Saylor’s long-term debt strategy as evidence of MicroStrategy’s resilience.

“People think if Bitcoin crashes, he’s going to crash,” Scaramucci was quoted as saying in the interview by Bloomberg. “But if you really look at his balance sheet, you see he has long-term debt and he has rolling long-term debt. You would have to have a systemic collapse of Bitcoin for six to seven years to bankrupt it.”

MicroStrategy’s bold bet on Bitcoin has pushed its shares up more than 400% this year, while the company has used billions of dollars in convertible debt to fund purchases.

The company currently has $7.2 billion in convertible debt outstanding, of which $6 billion will be raised in 2024 alone. According to the media report, while some people are worried that the falling price of Bitcoin may force MicroStrategy to sell off its Bitcoin holdings, further depressing the price, Scaramucci believes that this statement is exaggerated.

Also read: Scaramucci: Bitcoin is a volatile asset but ‘ready for prime-time institutional investing’

He compared MicroStrategy’s structure to that of Lehman Brothers during the 2008 financial crisis.

MicroStrategy remains the largest holding in the First Trust SkyBridge Crypto Industry and Digital Economy ETF, which is sub-advised by SkyBridge Capital. Scaramucci praised Thaler’s innovative approach, saying, “He created this positive flywheel by issuing debt and equity.”

Why it’s important: Bitcoin has recently retreated from its all-time high of $108,000, retreating amid profit-taking and market volatility. Scaramucci predicts a possible 30-40% correction, which could take the price of Bitcoin to $60,000-70,000.

However, he remains optimistic about Bitcoin’s long-term trajectory, citing favorable regulatory developments and U.S. exchange-traded funds investing directly in the cryptocurrency.

“Could it be worth $18 trillion?” Scaramucci guessed. “We believe it can. Is this going to go straight to $18 trillion? No.”

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