Stanphyl Capital Partners hedge fund manager Mark Spiegel believes that investing in bitcoins could end up being a complete fiasco for MicroStrategy.
It's funny, this crazy guy [MicroStrategy CEO Michael Saylor] is like one of the Hunt brothers who worked in the silver market. One day he'll want to sell all the bitcoins he bought and he'll realize that he's the market, wrote Spiegel.
The Nelson brothers, William and Lamar Hunt, whom Mark mentioned, methodically bought up silver with the support of Arab sheiks and other creditors. By 1980, they owned 4252 tons of the precious metal, topping the list of private enterprises by this indicator. However, when the silver price rose sharply, speculators began to fix profits, getting rid of their savings, so the metal fell sharply on March 27, 1980, on the so-called "Black Thursday." Then the Hunt brothers lost $2 billion in one day.
Nelson (left) and William Hunt
Spiegel compared Saylor to one of the Hunt brothers after learning that MicroStrategy plans to release securities worth $42 billion to buy bitcoins. The company currently owns 252 BTC worth $220 billion, so if this plan is successfully implemented, the company will more than double its cryptocurrency holdings.
