Fred Thiel, CEO of MARA Holdings Inc. (NASDAQ:MARA), expressed reservations Tuesday about the future success of the Bitcoin (CRYPTO: BTC) treasury play popularized by Michael Saylor’s Strategy Inc. (NASDAQ:MSTR).
What Happened: During the company’s second-quarter earnings call, Thiel praised Saylor and his team for pioneering the Bitcoin treasury strategy, but voiced concerns about the risk of market saturation.
“You know, kudos to Michael and his team, for what they’ve done there. But any advantage in any market starts disappearing when you have lots of companies going after it,” he said. “They can’t all be successful.”
Thiel feared that companies might be forced to sell their coins when their mNAV drops to one or even goes negative. For the curious, mNAV is the ratio of the company’s market capitalization to the market value of Bitcoin it owns.