Venture capitalist Jason Calacanis has raised concerns about MicroStrategy’s aggressive Bitcoin acquisition strategy, arguing that it threatens the cryptocurrency’s foundational principle of decentralization. With MicroStrategy now holding over 444,000 BTC—approximately 2.2% of Bitcoin’s total supply—Calacanis believes this concentrated ownership could erode trust in Bitcoin as a decentralized financial tool.

The Risks of Concentration

Calacanis cautioned that if a single organization owns too much Bitcoin, it could damage the network’s reputation and push investors toward more decentralized alternatives. “If one company owns more than 10% of all BTC, Bitcoin could break. MicroStrategy’s excessive buying makes it seem like Bitcoin is controlled by Michael Saylor or his company,” he stated. This perceived centralization could lead to skepticism among users and a shift toward competing assets.

MicroStrategy’s latest purchase of 5,262 BTC for $561 million at an average price of $106,662 per coin further amplifies these concerns. Executive Chairman Michael Saylor remains undeterred, declaring that the company aims to accumulate enough Bitcoin to reach a $10 trillion market cap, with a long-term forecast of Bitcoin reaching $13 million per coin and a market cap of $280 trillion.

Balancing Growth and Decentralization

Saylor has consistently promoted Bitcoin’s decentralization as one of its most unique qualities. However, critics like Calacanis argue that MicroStrategy’s strategy contradicts this ethos, potentially harming Bitcoin’s long-term viability.

Investment Implications

While MicroStrategy’s commitment to Bitcoin could drive demand and influence prices positively, it also raises questions about sustainability and decentralization. Investors should weigh the risks associated with concentration and market perception before making decisions.

This article is not investment advice. Please consult a financial advisor before making any investment decisions.