Tesla investor and CEO of Gerber Kawasaki Wealth & Investment Management, Ross Gerber, has voiced his concerns about Michael Saylor’s Bitcoin investment strategy for MicroStrategy. Gerber made a scathing statement on December 2nd, arguing that the business model is detrimental to value creation. He proposed building a gold-backed company with shares trading at a premium as opposed to Bitcoin, highlighting the risks associated with investing in digital assets. This comes after a recent call to action by MicroStrategy itself to establish a $1.44 billion USD reserve fund for dividend payments and debt service. This move sparked debate about the true nature of the company’s business model, which has seen a shift from its traditional software-focused roots under Saylor’s leadership. The company is now widely viewed as a Bitcoin holding vehicle. Under this strategy, funds raised through stock sales are used to purchase Bitcoin and the value of the business is intrinsically linked to Bitcoin price fluctuations. A decline in market demand has led to a collapse in the company’s net asset value (mNAV), now trading almost at par with its Bitcoin holdings. This shift has attracted criticism from various quarters, with analysts highlighting the potential risks associated with a low mNAV. Strategically holding on to Bitcoin during periods of market volatility is deemed risky as it can lead to the loss of liquidity and exacerbate losses in times of market turmoil. Concerns are growing about the company’s potential for delisting from major equity indices, such as the MSCI USA Index, due to a substantial decline in institutional holdings and the potential for a sharp drop in share price.