Canadian mining billionaire Frank Giustra has predicted that the growing trend of companies holding Bitcoin in their corporate treasuries will end in a massive sell-off.
This comes after the shares of Strategy (MSTR) recently experienced yet another violent sell-off.
"Just wait"
The debate began when long-time investor Andrew Webley praised Bitcoin’s resilience. He stated that he had "not encountered a store of value as robust as Bitcoin - including GBP."
Despite the cryptocurrency's inherent volatility, Bitcoin's performance profile was unmatched, according to Webley.
Giustra’s response was blunt and bearish."Wanna bet?" Giustra retorted. "Just wait until all this Bitcoin treasury supply starts hitting the market."
He has repeatedly warned that corporate treasuries holding Bitcoin are not a sign of strength, but a ticking time bomb.
Giustra believes that a broader stock market crash is inevitable since he is convinced that it is in a bubble territory. When this happens, he predicts companies holding BTC will be forced to liquidate their holdings to cover operational losses or margin calls.
"Mark my words, this will end badly," he recently said.
Despite his harsh criticism, Giustra is not a permanent "never-coiner." On multiple occasions, Giustra has admitted that he "might be a buy at some point."
Taking aim at the Winklevii
The billionaire mogul has also taken a shot at the Winklevoss brothers, responding to a video of them reaffirming his belief that the asset is destined for seven figures.
"We see Bitcoin trading at $1,000,000 a Bitcoin," Winklevoss stated. "We think there's easily a 10X from here."
The projection did not sit well with Giustra. He dismissed the prediction as a desperate attempt to lure in retail liquidity, claiming that they are "shameless." He stated that he was "running out of new pockets to stuff into this asset."
Alex Dovbnya
Godfrey Benjamin
Gamza Khanzadaev