Michael Saylor Faces Criticism Over Jet Purchase Amidst MicroStrategy Decline

Michael Saylor is under intense scrutiny on Crypto Twitter after recent regulatory filings showed that Strategy (formerly MicroStrategy) invested $27 million as a deposit for a corporate jet. This news has sparked considerable backlash, with many users questioning the appropriateness of the purchase amid significant turmoil in both Bitcoin and the company's stock performance.

Key Takeaways

Michael Saylor and Strategy face criticism for purchasing a corporate jet amid declining stock performance.
Recent filings indicate significant investments in Bitcoin, raising questions about the company’s spending priorities.
Investor confidence is shaken as many believe that capital should focus on Bitcoin rather than executive luxuries.
The debate showcases the challenge of balancing operational needs with public perception in a Bitcoin-centric company.

Shareholders Question Spending Decisions

According to MicroStrategy’s Form 10Q, filed on November 3, the company's cash expenditure for investments has significantly increased year-over-year.

The filing revealed that for the nine months ending on September 30, Strategy placed a $27 million deposit on a new corporate aircraft. Additionally, it reported that it had spent $19.38 billion on Bitcoin purchases, which were financed through convertible notes, stock offerings from its STR series, and ongoing ATM programs.

Despite $MSTR shares being down by 55% over the past year, Saylor opted for a new jet. The 10Q highlights two key cash uses in their investment activities:

– $15.4 billion allocated for BTC purchases
– $27 million for a deposit on a corporate jet

The purchase raises eyebrows, particularly given the current challenges faced by the company.

While it's common for corporations to utilize funds for executive travel, critics argue that the specifics of Strategy's situation are especially relevant. The firm no longer operates as a traditional software company but functions more like a vehicle influenced by Bitcoin's fluctuating prices.

With MSTR down around 30% in the past month, concerns have arisen about whether investing in a multimillion-dollar jet aligns with the company’s professed Bitcoin-first approach.

Investor Confidence at Risk

The reaction on Crypto Twitter has been swift, with many asserting that shareholder funds should prioritize expanding the company’s Bitcoin holdings over enhancing executive luxuries.

Users expressed their disappointment that the jet deposit coincided with billions in financing directly linked to new equity issuances. Some have suggested that the timing of the jet purchase has eroded trust in the company’s commitment to its retail investors.

Supporters of Strategy have countered that corporate aircraft are standard for companies engaging in substantial global operations and frequent executive travel. They also pointed out that the $27 million deposit accounts for only a small portion of the total funds allocated to Bitcoin acquisition during the same nine-month period.

Critics counter that unlike firms with robust products and profitability, Michael Saylor and Strategy seem to be on the edge of financial trouble, facing significant losses from Bitcoin and potentially needing to sell assets soon.

This ongoing debate reflects a broader discussion about how a public company centered on Bitcoin should navigate operational demands while also considering public perception. As Bitcoin prices continue to fluctuate, this incident underscores how closely Saylor's decisions are connected to market sentiment, especially during times of increased volatility.

The unfolding controversy also highlights how investor expectations evolve when a company bases its business model around a singular, macro-sensitive asset.