Investor and author of the best-selling personal finance book Rich Dad Poor Dad, Robert Kiyosaki, has criticized an unnamed gold advocate for disparaging MicroStrategy’s (NASDAQ: MSTR) Bitcoin (BTC) investment plan.
Kiyosaki labeled the critic ‘Mr. Big Mouth No Balls,’ accusing him of hypocrisy for attacking Michael Saylor, MicroStrategy’s executive chairman, Bitcoin purchases while seemingly wishing the company had invested in gold instead, he said in an X post on November 23.
In this regard, Kiyosaki defended Saylor for leveraging the company’s treasury to invest billions in Bitcoin, calling him a “genius.”
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According to Kiyosaki, the approach has created wealth for himself, his company, and its investors.
“Would Mr. BIG MOUTH and No BALLS be happier if Saylor bought Mr. BIG MOUTH gold? Of course, Mr. Big Mouth with no Ball,s would be happier if Saylor bought billions in gold. I think Michael Saylor is a genius. I am following Saylor’s tactical Bitcoin investment plan…. obviously not to Saylor’s dollar size….yet making myself and my company’s employees richer and Jobs much more secure….especially in these treacherous financial times,” he said.
The financial educator, who has long advocated for gold and silver, highlighted Bitcoin as a crucial hedge against what he termed ‘fake dollars’ printed by the Federal Reserve.
“I still invest in gold and silver because the real problem is our fake dollars, printed by a corrupt Central Bank…known as “The Fed” and a Treasury Department filled with bureacrats,” he added.
Initially, Kiyosaki, who has continued to warn of a major economic crash, dismissed the debate between Bitcoin and gold. He considers both asset classes equal as they serve the purpose of protecting wealth.
MicroStrategy’s BTC plan criticism
Although Kiyosaki failed to name the individual in question, it is worth noting that economist and gold bug Peter Schiff has been critical of Saylor’s Bitcoin strategy. Schiff argues that Saylor is gambling with investors’ money by investing in Bitcoin.
To this end, the economist has warned that MicroStrategy will be forced to sell its Bitcoin holdings in case of a recession.
With Bitcoin’s recent move towards the possible $100,000 mark, Schiff criticized MicroStrategy in an X post on November 22 for issuing $3 billion in convertible debt to buy more Bitcoin, calling the strategy a ‘Ponzi scheme.’
He argued that MSTR’s reliance on selling shares and taking on debt to fund its Bitcoin purchases is unsustainable.
According to Schiff, if MicroStrategy can’t sell more shares, it will be forced to sell its Bitcoin, potentially crashing the market.
Indeed, MicroStrategy has been among the best-performing stocks this year, outperforming many companies and aligning with the upward trend in Bitcoin’s price. To this end, there are calls for other S&P 500 companies to replicate the MicroStrategy Bitcoin plan.
Some analysts argue that MicroStrategy’s use of leverage to generate compounding yield on its Bitcoin holdings through repeated access to U.S. capital markets sets its stock apart from alternative Bitcoin exposure methods like spot Bitcoin ETFs.
Meanwhile, MSTR continues to witness increased capital inflow from major institutional firms. For instance, at the end of the September quarter, the stock’s institutional ownership rose from 667 to 738 holders, totaling $15.3 billion.
Some notable names include Vanguard Group and Capital International Investors, which acquired nearly 16 million shares in Q3, a 1,000% increase. State Street and Susquehanna together purchased 5.3 million shares.
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By press time, MSTR was trading at $425, gaining over 6% in 24 hours. In 2024, the equity had spiked 515%.
In conclusion, while Kiyosaki defends Saylor’s Bitcoin strategy, investors should be cautious of the underlying concerns, as MicroStrategy’s plan is still considered to be in its infancy despite the major returns.
Featured image via Shutterstock
