Capriole founder calls MicroStrategy a time bomb, urges debt repayment

Charles Edwards, founder of crypto hedge fund Capriole Investments, has argued that MicroStrategy (MSTR) must repay all its debts and revert to being a pure Bitcoin holding company to defuse what he describes as a business model akin to a time bomb. He outlined the following rescue plan for the company: - Repay all debts, terminate what he called fraudulent income products like its perpetual preferred stock (STRC), and return to being a pure Bitcoin holding company, even if it is painful. - Acquire publicly listed companies that accumulate Bitcoin and trade at discounts of over 50% to their net asset value (NAV), thereby acquiring BTC at a reduced price. Over time, it should consolidate the market to fewer than 10 such companies. - Evolve into a Bitcoin bank that offers lending, borrowing, and payment services backed by a genuine collateral-based revenue model. Edwards added that while it is unfortunate, MicroStrategy and its founder Michael Saylor have gone too far. He stated that any path forward would involve significant pain but that his proposed plan is the only one that is sustainable in the long term. He stressed that if the company's business model continues to rely on Bitcoin's price appreciation to pay dividends, it is tantamount to a time bomb.