Former Founder of BitMEX Commented About MicroStrategy

Arthur Hayes, the former CEO and founder of BitMEX, evaluated the recent developments.

Former founder of BitMEX commented about MicroStrategy. Arthur Hayes, the former CEO and founder of the derivatives exchange BitMEX, who surrendered to the USA and was released on bail of $10 million, wrote a long article on when and under what conditions MicroStrategy would have to sell Bitcoins. In addition, Hayes said he did not agree with the "constant and blind" denigration of fossil fuels. Stating that it is still early for El Salvador to accept Bitcoin as the national currency, Hayes said that it would be a real and important move for workers in such countries to demand BTC as a salary.

“Saylor Turns His Company Into A Fake Bitcoin ETF Company”

Saying that MicroStrategy's sale of Bitcoins is related to whether it will pay the bonds that are due in the future, Hayes said, "I don't see this situation as very likely" and added: “Is Michael Saylor an irresponsible man or a genius?’ The answer to this question is actually the price of Bitcoin. Because Saylor has turned his company into a fake Bitcoin ETF. It issued $1.6 billion bonds in 2020 and bought Bitcoin with all its income. My God! The payment period of the 0.75 percent convertible coupon bond comes on December 9, 2025. The zero percent coupon is on February 17, 2027. If MicroStrategy does not have the cash flow to pay for these bonds or if it cannot enter the corporate bond market, then the only remaining option will be to sell its assets. The question to be asked here is; how much of a return would be uneconomical to refinance the bond. The answer to this question basically lies in the race between the performance of Bitcoin and the growth of the US money supply. It is the FED that decides this. Considering that MicroStrategy is a cash-generating company, I do not think that bonds cannot be paid. Also, many corporate bond investors lack common sense. They blindly follow some investment styles. Therefore, no matter how much they hate Bitcoin, if MicroStrategy's corporate bond has an attractive return, they will buy it until the end. Do not worry too much, if CEO Saylor will sacrifice himself for you, he will continue to carry your portfolio in difficult seas and will not condemn you to walk in the desert. In addition, Bitcoin outperformed MicroStrategy’s unpaid bonds, much better than the company’s own stock. Passed them all. This is a surprise!"

Disagrees with Fossil Fuels

Expressing that he focused more on sports during this period and did not follow "keyboard warriors", Hayes also said that he opposed the ESG discussions and said: “There is a notion that 'Fossil fuels are bad and we need to stop using fossil fuels economically'. I am against it. If this approach is followed without question, I think that investors' capital will go to the wrong places. Yes, fossil fuels definitely have an impact on the environment. This is true, but human beings also consume them to live and have fun. There are many ways out of this consumption style.”

“What If A Salvadoran Employee Demands Bitcoin As Salary?”

Saying that El Salvador's adoption of Bitcoin is too early to say that it is a replacement for major payment systems, Hayes said that it would be a truly revolutionary move for employees to demand their salary payments in Bitcoin: “It is too early to say that the global payment system, which has managed to extract a certain percentage from the GDP of the developing countries, has come to an end. The president of El Salvador hopes that high transaction fees will now decrease with the use of Bitcoin. The most important issue here is that what if employees in the local workforce of El Salvador demand their salaries in Bitcoin? There are many countries that bring cheap labor to the world market. The ex-president of the USA may describe these countries as 'shitholes', but poor women from the Philippines, Indonesia, and Myanmar clean our toilets, cook our meals, and take care of our children. What if they demand salary in Bitcoin? Do you oppose as an employer or do you look for a way to come to an agreement? It is a very interesting experiment. We have always seen such local workers as powerless people. But they do things we don't do. Then I either do these things or go to the nearest Bitcoin ATM"