Key facts
- Bitcoin Policy UK CEO Susie Ward criticized Michael Saylor's promotion of MicroStrategy's STRC investment.
- Ward stated the promotion was 'dishonest' for downplaying investment risks.
- She believes companies using financial engineering to buy Bitcoin is contrary to Bitcoin's principles.
- Ward compared such strategies to 'memecoin, pump-and-dump style investment schemes'.
- MicroStrategy recently acquired 1,587 BTC for $100 million.
Bitcoin Policy UK CEO Susie Ward has voiced strong criticism regarding MicroStrategy's strategy of using financial engineering to acquire Bitcoin, particularly calling out Michael Saylor's promotion of the company's STRC offering as 'dishonest'. Ward argued in an interview that Saylor's promotional video misrepresented the risk profile of the STRC perpetual preferred shares, which offer an 11.25% dividend and are used to fund Bitcoin accumulation.
Ward expressed discomfort with the risk involved, stating that the video implied no risk, which she found misleading. She elaborated that the practice of issuing stock, selling it to dilute shareholders, and then using the proceeds to buy Bitcoin is fundamentally at odds with Bitcoin's core value proposition of scarcity and resistance to inflation. She believes this approach combines Bitcoin's reputation with 'fiat games,' leading to projects that resemble 'memecoin, pump-and-dump style investment schemes.'
Many companies followed MicroStrategy's lead in adopting Bitcoin treasury strategies, often borrowing from traditional markets to buy BTC. Ward disapproves of this trend, noting that these companies' share prices are closely correlated with Bitcoin's price, which has seen significant declines. MicroStrategy's shares have fallen over 60% in the past year, trading around $132 on Monday. Despite the criticism, MicroStrategy recently announced the purchase of an additional 1,587 BTC for approximately $100 million, bringing its total holdings to 846,842 BTC.