While Michael Sailor reports on the purchase of another bitcoin batch for Strategy Balance (Microstrategy), claims to the businessman and the company management model are brewing in the crypto community. The reason was a change in a policy of issuing shares, which many investors perceived as a rejection of previous obligations and a signal of possible “erosion” of shareholders shares.
We tell you why Mile Sailor may not be the hero of the crypto industry, which many consider him to be a real pest.
Previously, Microstrategy adhered to the rule: not to issue shares at the multiplier of the market value to the “clean” cost of bitcoin reservations (MNAV) below 2.5 ×. This barrier served as a kind of guarantee for investors: the issue of shares with a lower coefficient was considered too risky and could reduce the attractiveness of the company’s securities. However, in August, Seilor announced the revision of the approach. The updated manual for the ATM program (AT-The-Market Equity Program) has a new wording: “Management Flexibility”. Now the management has the right to issue shares and below the threshold of 2.5 ×, if it considers it “appropriate”.
Critics, including well-known analysts and shorts, believe that the changes undermine the trust in Microstrategy. So, Ceo Whalewire Jacob King said that Sealor violated his own promises.
Particular attention is caused by the dynamics of the prize to MNAV. Since November 2024, it fell from 3.4 × to 1.6 ×. Against this background, the removal of restrictions is perceived as preparation for the release of new shares in the conditions of falling interest in the papers. Critics claim that this actually opens up the opportunity to erode the share of shareholders at any time when it is beneficial to management.
Mitting the rules of the Microstrategy shares below the 2.5 × mnav threshold will open Sailor with the opportunity to simplify the blurry of shares and attracting capital. The approach provides new purchases of bitcoin and can increase the company’s assets. As CEO and the largest shareholder, Sailor wins indirectly – due to the increase in the cost of packages of his shares, although for the rest of the shareholders the scheme bears the risk of erosion of shares.
CEO Whalewire also recalled that in 2000, Michael Sailor lost more than $ 6.8 billion in one day, becoming the largest loser of the “bubble of dotcomes”. King did not miss the opportunity to recall the accusations of his company by SEC. The regulator suspected Sailor in fake financial statements and a fictitious display of profit with actual major losses.
In his opinion, the day will come when Sailor “jumps off the ship, having sucked everything out of the crypto industry.”
Some participants in the crypto community drew attention to the fact that the events to which King refers occurred 25 years ago. In their opinion, a lot has changed during this time, including Silor’s approach to doing business. King is sure that the co -founder of Microstrategy continues to lie to his investors. In his opinion, the participants in the crypto community are disappointed in Silor when it will be too late.
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Source: Cryptocurrency
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