Gerber Warns Strategy’s Bitcoin Leverage Could Trigger a Selloff
In Bitcoin information in the present day, Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, argued this week that gold stays simpler to make use of for on a regular basis transactions than Bitcoin, reviving a long-running debate over the asset’s real-world utility.
The feedback arrived alongside a sharper assault on Michael Saylor’s Strategy Inc. (NASDAQ: MSTR), which Gerber warned might “nuke” Bitcoin if its leveraged accumulation mannequin unwinds, based on a notice shared with Benzinga.
Gerber’s utility argument facilities on a easy remark: gold may be exchanged in much more bodily settings worldwide than Bitcoin, even after years of trade claims concerning the cryptocurrency’s cost potential.
Trader Scott Melker pushed again on that framing, arguing that crypto-linked Visa and Mastercard playing cards already enable holders to spend Bitcoin at almost any level of sale that accepts plastic.
That distinction issues for anybody monitoring Bitcoin funds adoption, since card-rail spending routes by a custodian changing BTC to fiat on the level of sale quite than retailers accepting Bitcoin instantly on-chain.
Bitcoin News: Saylor’s Leverage Model Draws Fire
Gerber’s extra pointed criticism targets Strategy’s strategy of promoting fairness to fund Bitcoin purchases. He questioned why an investor would settle for diluted publicity at a premium to the underlying asset, a dynamic seen in Strategy’s inventory, which trades at roughly 1.61x its Bitcoin holdings.
“The reality they will promote inventory at some inflated valuation to then purchase Bitcoin is loopy unhealthy math for the investor. Why would you purchase $100 of Bitcoin for $200?”
Gerber stated Bitcoin’s periodic exhausting corrections might power Strategy into promoting if its debt-funded construction comes beneath strain, calling that state of affairs the mechanism that might “nuke” the cryptocurrency.
Strategy has countered that its shift towards perpetual most popular inventory, which carries no maturity date, insulates the corporate from pressured liquidations even in an 80% drawdown.
The firm held 629,376 BTC value greater than $72Bn as of its newest disclosure, after including 430 BTC for roughly $51.4M, but its inventory has lagged Bitcoin’s personal value efficiency over the identical stretch.
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Bitcoin Miners Betting Big on AI
Former Bitcoin miner @RiotPlatforms simply locked a ~$9B, 20-year lease with @AnthropicAI for 191 MW of AI capability in Texas.
More and extra miners are following the earnings in direction of AI infra; in the meantime, mining hashrate is down 21% from 2025 highs…
pic.twitter.com/Fyr0iQxcLa
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𝕄 𝕁
(@skizdidlyidler) August 16, 2026
In different Bitcoin information, Gerber additionally questioned whether or not Bitcoin’s community basis is weakening as main miners redirect infrastructure towards synthetic intelligence and high-performance computing.
That pattern is documented quite than speculative: a number of listed miners have already transformed mining capability into AI internet hosting contracts, a shift detailed in protection of Riot Platforms’ recent AI leasing arrangement.
Core Scientific, for instance, has been changing a 300-megawatt Texas facility, as soon as used for Bitcoin mining, into an AI knowledge middle campus, with colocation income now outpacing its digital-asset self-mining income.
CoinShares projections cited in protection of the pattern recommend mining income might fall from roughly 85% of complete income in early 2025 to beneath 20% by the top of 2026 for miners with vital AI contracts, based on crypto.news.
That reallocation of capital doesn’t sign the disappearance of Bitcoin mining, but it surely does imply the economics more and more favor AI internet hosting over pure hash-rate manufacturing, a pressure that helps a part of Gerber’s broader skepticism with out proving his declare that Bitcoin mining AI conversions have completely capped the community’s upside.
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