Strategy’s aggressive Bitcoin accumulation strategy is drawing renewed criticism as market volatility intensifies. Analyst Doctor Profit recently compared Michael Saylor’s approach to the excesses of the 2000 dot com bubble, arguing that continuously buying without a disciplined exit plan risks repeating past mistakes, especially in today’s AI driven market environment.
In a post on X, Doctor Profit said he had repeatedly warned Saylor that funding ongoing Bitcoin purchases through share issuance was dangerous. He claimed those concerns were dismissed. Since then, Strategy’s stock has declined about 75 percent from its highs, while Bitcoin has fallen roughly 50 percent from its peak. With an average entry price near $76,000 and Bitcoin trading around $63,000, the company’s position is currently below cost.
The analyst also criticized the firm for accumulating Bitcoin since 2020 without taking substantial profits or implementing meaningful strategic selling. As a result, shareholders have faced significant volatility while the company remains heavily exposed to price swings.
Doctor Profit pointed to Saylor’s experience during the dot com collapse as a cautionary tale, suggesting that the current enthusiasm surrounding artificial intelligence could represent a similar late cycle dynamic. Instead of reducing risk as warning signs appeared, he argued that Strategy increased its exposure.
The criticism comes as the company continues adding to its holdings. Strategy recently purchased 592 BTC for just under 40 million dollars at an average price of $67,286, bringing total holdings to 717,722 BTC. The acquisition was funded through the sale of nearly 298,000 Class A shares under its at the market program. The firm still has significant capacity to raise additional capital, with $37.4 billion in securities available for future issuance.
Concerns about Bitcoin focused treasury strategies have also been echoed by investors such as Michael Burry, who warned that further declines in Bitcoin could create broader stress across crypto markets and leave heavily exposed firms under pressure. Former BlockFi chief executive Zac Prince has similarly questioned the sustainability of these models, arguing that they rely heavily on financial engineering rather than core operating performance.
