Strategy Inc. MSTR executive chairman Michael Saylor cautioned companies against leveraging Ethereum ETH/USD and Solana SOL/USD like Bitcoin BTC/USD

input: Strategy Inc. MSTR executive chairman Michael Saylor cautioned companies against leveraging Ethereum ETH/USD and Solana SOL/USD like Bitcoin BTC/USD

Strategy Inc (NASDAQ:MSTR) executive chairman Michael Saylor has advised companies against leveraging Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) like Bitcoin (CRYPTO: BTC), comparing it to a “catastrophe.”

What Happened: In an interview with TheBlock that aired Saturday, Saylor likened Bitcoin to steel and compared Ethereum and Solana to balsa wood and clay bricks, which could buckle if used for a building's main structure. He warned against leveraging these tokens.

The Bitcoin maximalist said that Ethereum and Solana were not commodities but rather tokens. “And so I would caution anybody listening here against leveraging up on a token or a proprietary asset,” he added.

“The reason it works is I’m putting leverage on steel (Bitcoin). I’m doing it with the right material. I’m actually using a product which doesn’t deflect. Bitcoin is a crypto asset which does not deflect,” said Saylor.

To the contrary, doing the same thing with FTX Token (FTT/USD) or Terra Classic (LUNC/USD) or picking one’s favorite token could lead to “catastrophe,” he argued, citing the two implosions that rocked the cryptocurrency market in 2022.

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Why It Matters: Saylor’s cautionary advice comes at a time when companies are increasingly exploring cryptocurrencies other than Bitcoin as investment tools.

Upexi Inc (NASDAQ:UPXI) announced raising about $100 million through securities purchase agreements Monday to expand its cryptocurrency ventures, including building a Solana treasury.

Before this, BioNexus Gene Lab Corp (NASDAQ:BGLC) announced Ethereum’s adoption as a treasury reserve asset last month, claiming to be the first company on NASDAQ to do so.

Saylor’s Strategy, on the other hand, has been razor-focused on Bitcoin, having built a stockpile of 534,741 BTCs, valued at $47.19 billion, according to bitcointreasuries.com.

Price Action: At the time of writing, Bitcoin was trading at $88,226.94, showing a 1.13% rise in the last 24 hours, according to Benzinga Pro data.

Shares of Strategy showed a slight increase of 0.23% in the after-hours trading session. The stock closed with a gain of 0.18%, reaching $317.76 during Monday’s regular trading hours.

MSTR demonstrated a very high momentum score—a measure of the stock's relative strength based on its price movement patterns and volatility over multiple timeframes—as of this writing. To discover similar high-momentum stocks, go to Benzinga Edge Stock Rankings.