- Billionaire investor Bill Ackman is finally pivoting from his previous stance on Bitcoin (BTC).
- However, the American hedge fund manager’s reason for buying the digital asset was subtly criticized by MicroStrategy Executive Chair Michael Saylor and Riot Platforms VP of Research Pierre Rochard.
Bill Ackman Considers Buying Bitcoin
Pershing Square Capital Management Founder and CEO Bill Ackman’s recent posts on X got the cryptocurrency community riled up as he pondered buying Bitcoin. The billionaire hedge fund manager was notably known for avoiding cryptocurrencies after his earlier support for Helium left him with a bad taste for his investors.
According to Ackman, the rising price of Bitcoin could drive its mining activity, hence, proportionately pushing up energy costs. The latter could then contribute to inflation and devaluate the dollar.
The billionaire added that the unending cycle could further pump demand for Bitcoin and energy. He warned the scenario could also play the opposite though.
Michael Saylor Comments on Bill Ackman’s Statements
Ackman’s statements drew the attention of Bitcoiners, and one of them was MicroStrategy Co-Founder and Executive Chair Michael Saylor. The Bitcoin maximalist encouraged the Pershing Square CEO to buy the digital asset, but not for the reasons he mentioned.
Saylor clarified that most Bitcoin mining companies nowadays are helping reduce electricity costs for consumers. The MicroStrategy exec said he’s willing to discuss the subject in a 1-on-1 talk with Ackman.
MicroStrategy is now one of the biggest whales in Bitcoin and has since rebranded itself as a Bitcoin development company. As of February 25 this year, the firm has grown its holdings to 193,000 BTC worth around $6.09 billion at an average price of $31,544 per BTC. Today’s price of $68,500 per BTC now puts their investment at $13.22 billion, which is already double the money they poured in at $7.13 billion of unrealized gains.
Last week, MicroStrategy announced its private offering of $600 million of convertible senior notes. A portion of the sale’s net proceeds will be allocated to acquire more Bitcoin while the rest will go to corporate uses.
Riot Platforms VP Pierre Rochard Also Reacts
Riot Platforms Vice-President of Research Pierre Rochard also threw his hat in the discussion to enlighten Ackman’s misleading analysis. He explained that there are a lot of feedback loops in the subject. In the case of BTC, purchasing power does not shoot straight up because of wealth effect spending or rebalancing of holders.
Rochard likewise invited Ackman to visit their Rockdale headquarters so they could have a conversation about Bitcoin mining economics.