Robert Kiyosaki Defends MicroStrategy's Bitcoin Strategy Amid Criticism

According to Finbold, Robert Kiyosaki, the investor and author of the renowned personal finance book 'Rich Dad Poor Dad,' has criticized an unnamed gold advocate for disparaging MicroStrategy's Bitcoin investment strategy. Kiyosaki referred to the critic as 'Mr. Big Mouth No Balls,' accusing him of hypocrisy for attacking Michael Saylor, the executive chairman of MicroStrategy, over the company's Bitcoin purchases while seemingly wishing the company had invested in gold instead. In a post on X dated November 23, Kiyosaki defended Saylor's decision to leverage the company's treasury to invest billions in Bitcoin, describing him as a 'genius.' Kiyosaki believes this approach has generated wealth for Saylor, his company, and its investors. Kiyosaki, who has long advocated for gold and silver, emphasized Bitcoin as a crucial hedge against what he describes as 'fake dollars' printed by the Federal Reserve. He stated, '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 bureaucrats.' Despite his criticism, Kiyosaki dismissed the debate between Bitcoin and gold, considering both asset classes as equal in their ability to protect wealth. Although Kiyosaki did not name the individual in question, it is noteworthy that economist and gold advocate Peter Schiff has been critical of Saylor's Bitcoin strategy. Schiff argues that Saylor is gambling with investors' money by investing in Bitcoin and has warned that MicroStrategy may be forced to sell its Bitcoin holdings in the event of a recession. With Bitcoin's recent movement towards the $100,000 mark, Schiff criticized MicroStrategy in a post on X on November 22 for issuing $3 billion in convertible debt to buy more Bitcoin, labeling the strategy a 'Ponzi scheme.' He argued that MicroStrategy's reliance on selling shares and taking on debt to fund its Bitcoin purchases is unsustainable. According to Schiff, if MicroStrategy cannot sell more shares, it will be forced to sell its Bitcoin, potentially crashing the market. Despite these concerns, MicroStrategy has been one of the best-performing stocks this year, outperforming many companies and aligning with the upward trend in Bitcoin's price. There are calls for other S&P 500 companies to replicate MicroStrategy's 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, MicroStrategy continues to witness increased capital inflow from major institutional firms, with notable names like Vanguard Group and Capital International Investors acquiring significant shares. As of the latest trading, MicroStrategy's stock was valued at $421.88, reflecting a gain of over 6% in 24 hours and a 515% increase in 2024. While Kiyosaki defends Saylor's Bitcoin strategy, investors are advised to remain cautious of the underlying concerns, as MicroStrategy's plan is still considered to be in its early stages despite the significant returns.