Investor Mike Alfred has issued a sharp critique of Michael Saylor’s Strategy Inc. (MSTR). In a new , Alfred argued that the company’s aggressive use of preferred stock debt effectively renders its Net Asset Value (NAV) “irrelevant.” He described the valuation model as a “fairy tale” due to the dilution risks faced by common shareholders.
Investor Mike Alfred has issued a sharp critique of Michael Saylor’s Strategy Inc. (MSTR). In a new , Alfred argued that the company’s aggressive use of preferred stock debt effectively renders its Net Asset Value (NAV) “irrelevant.” He described the valuation model as a “fairy tale” due to the dilution risks faced by common shareholders.
Alfred, a board member at Bakkt and IREN, disclosed he has exited his MSTR position entirely. He reallocated capital to Strive, purchasing 1.66 million shares. Strive currently holds . Alfred cited Strive’s cleaner capital structure as the primary driver for the switch.
“If you structure many securities in a company, all of these things sit on Bitcoin. The heavier the weight of those things, the less the idea of Bitcoin per share really matters,” Alfred
In his defense, Saylor has noted that the company is heavily backed by highly liquid creditors. Most importantly, that Strategy will remain operational even if the Bitcoin price drops 80-90%.
Furthermore, Strategy only needs Bitcoin price to rise by 1.25% per year to pay shareholders dividends indefinitely. Additionally, Saylor noted that the company would have 80 years to figure out its next move if the Bitcoin price were to record consecutive zero gains per year.
Alfred is more bullish on Bitcoin treasury companies than BTC itself primarily. According to him, investing in BTC treasury companies, which have a lesser market cap than Bitcoin, are likely to outperform the flagship coin in its path to $200k.
According to Alfred, Bitcoin is well-positioned to reach a market cap of between $50 trillion and $100 trillion due to its unique properties. He said his investment portfolio is heavily influenced by Bitcoin and its related stocks among other industries to assist in diversification.
The investor noted that the strong macroeconomic backdrop amid rising demand for Bitcoin by treasury companies will propel the flagship coin to $1 million by 2033. In the United States, Alfred noted that the influence of President Donald Trump on Bitcoin is underrated by most investors.
Alfred also noted that the influence of President Donald Trump is underrated by most investors. He pointed to the creation of a U.S. Bitcoin reserve within the first year of the administration as a key signal. This political “goodwill” in the U.S., he argued, will eventually force other global governments to gain exposure to Bitcoin.
