- Michael Saylor, founder of MicroStrategy, alleges that a short seller used bots to flood social media with negative comments about his company.
- Saylor identified the campaign while monitoring engagement metrics on bearish posts about MicroStrategy.
- He claims the negativity is not organic and was orchestrated by a “digital marketing organization” paid by a short seller.
- Some shareholders agree, while skeptics argue the company’s ongoing issuance of new shares is responsible for price declines.
- Public executives, including Elon Musk and others, have similarly blamed short sellers for falling share prices.
Michael Saylor, founder of MicroStrategy, says a short seller paid for a large number of social media bots to spread negative messages about his company. Saylor made these statements in an interview with Natalie Brunell.
Saylor claimed he found a coordinated digital marketing effort targeting his company after examining the engagement data on posts critical of MicroStrategy. He said that the large volume of negative posts did not match the actual performance of the company’s Bitcoin holdings.
According to Saylor, “a short seller in my stock has actually paid a digital marketing organization to spin up a bunch of bots to post a bunch of nasty, awful, skeptical cynicism.” He described the effort as transparent and aimed at making it look like there was broad protest against him and the company, which holds the largest publicly traded bitcoin treasury.
Concerns have grown among investors because MicroStrategy‘s stock price has underperformed bitcoin on 90% of trading days in the past year. Some on social media have echoed Saylor’s claims, but others remain doubtful. One commenter argued, “They’re constantly diluting it [MSTR] by issuing new shares forever, which keeps price action suppressed forever.” Another added, “So Saylor is blaming his stock decline on Twitter bots and not the infinite dilution.”
Blaming short sellers is a common tactic among corporate leaders when stock prices fall. Executives like Elon Musk of Tesla, Alex Karp of Palantir, and Patrick Byrne of Overstock have also pointed to short selling activity in response to declining share values.
For further analysis on crypto treasury stocks, see the report on how Nasdaq impacted MicroStrategy and similar companies. Fans and critics of Saylor continue to debate the root causes of MicroStrategy‘s market performance on social media.
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