Jason Calacanis, renowned as the “World’s Greatest Angel Investor,” has raised concerns about MicroStrategy’s aggressive Bitcoin acquisition strategy. He cautioned that Bitcoin’s foundational principle of decentralization might be jeopardized if a single entity amasses too much of the cryptocurrency. Meanwhile, Bitcoin’s price surged 4% in the past 24 hours, with its market capitalization reaching $1.94 trillion.
MicroStrategy’s Ambitious Bitcoin Accumulation
Under the leadership of Michael Saylor, MicroStrategy has emerged as one of Bitcoin’s staunchest advocates, consistently expanding its holdings. The company recently purchased 5,262 BTC for $561 million, averaging $106,662 per BTC. This brings its total holdings to an astonishing 444,262 BTC, accounting for approximately 2.2% of Bitcoin’s total supply.
However, MicroStrategy’s ambition to issue enough shares to potentially acquire all existing BTC has sparked alarm. Saylor has outlined a vision to eventually own $3 trillion worth of BTC and anticipates MicroStrategy’s market cap reaching $10 trillion. This strategy not only aims to enhance the company’s asset base but also reflects a calculated move to deepen its investment in BTC.
Concerns Over Bitcoin’s Ownership
Calacanis expressed apprehension about the implications of one entity wielding excessive control over BTC. He warned that if a single company owns 10% or more of the cryptocurrency, BTC’s decentralized ethos could be compromised, undermining trust in its fairness.
“You break the game of BTC if any one individual owns too much—I’m guessing that number is like 10%,” Calacanis stated in a tweet.
He further noted that excessive concentration of BTC ownership might drive users to seek alternatives perceived as more equitable and decentralized. Bitcoin’s resilience and widespread adoption, he argued, hinge on its openness and inclusivity.
BTC Price Surge and Market Update
BTC’s price has recently climbed from $95,000 to $98,314, marking a 4% increase in 24 hours, and is on the verge of testing the $100K resistance level. If it breaks past this threshold, Bitcoin could soon challenge its all-time high.
Despite the bullish price action, the BTC ETF market faced significant outflows totaling $338.4 million on December 24, 2024. Major contributors to this decline included IBIT, with outflows of $188.7 million, and FBTC, with $83.2 million in negative flows.
The juxtaposition of MicroStrategy’s ambitious plans with concerns about BTC’s decentralization highlights the challenges of balancing large-scale adoption and the cryptocurrency’s foundational principles.
