Veteran investor Ross Gerber has intensified his criticism of Tesla while maintaining his skepticism toward Bitcoin, questioning whether the cryptocurrency has genuine everyday practicality despite 'endless promises of its use cases.' Speaking to Benzinga, Gerber expressed frustration with Tesla's progress, stating 'We know that he was going to make 20 million cars a year five years ago, but Tesla was stuck at two [million].' He criticized the company's Robotaxi ambitions, saying 'We're supposed to have cabs in all major cities right now. We don't have one cab that works.' Gerber called Musk's claims 'delusional' and expressed skepticism about SpaceX's $1 trillion revenue prediction for 2029, stating he was 'not keen on believing Musk's timelines.' The CEO of Gerber Kawasaki Wealth and Investment Management has grown increasingly skeptical about both major investments, with his recent statements revealing a clear departure from his earlier optimism about both Bitcoin and Tesla.
Despite Gerber's skepticism, $853.5 million in net inflows across five consecutive trading sessions has emerged as a real-time test of Bitcoin's demand quality. As reported by crypto.news, the IBIT ETF accounted for roughly 81% of this inflow, with the fund growing faster than any ETF in history. This flow structure reversed the prior week's withdrawals and helped support the $64,000 area, with Bitcoin now moving through $65,000 and showing visible price response. The $58.7 billion that has flowed into US spot Bitcoin ETFs since launch has fundamentally changed Bitcoin's liquidity profile, providing a mainstream financial wrapper that can absorb and distribute demand at levels earlier critics dismissed. However, the concentration risk remains significant, as institutional buying includes directional exposure, basis trades, and hedged positions that can unwind when relative values change.
Gerber has intensified his criticism of Strategy Inc. (NASDAQ: MSTR), warning that the company's leveraged Bitcoin accumulation model could 'nuke' Bitcoin if its debt-funded structure comes under pressure. According to a note shared with Benzinga, Gerber questioned why investors would accept 'crazy bad math' by buying Bitcoin for $200 when it's worth $100, referring to Strategy's stock trading at roughly 1.61x its Bitcoin holdings. He warned that Bitcoin's periodic hard corrections could force Strategy into selling if its debt-funded structure comes under pressure, calling that scenario the mechanism that could 'nuke' the cryptocurrency. Strategy holds 629,376 BTC worth more than $72 billion as of its latest disclosure and has added 430 BTC for roughly $51.4 million, yet its stock has lagged Bitcoin's price performance. The company has countered that its shift toward perpetual preferred stock insulates it from forced liquidations even in an 80% drawdown.
Bitcoin's practical challenges are being reflected in market dynamics, with the Coinbase Bitcoin Premium Index remaining negative for 90 days, indicating that Bitcoin trades at a lower price on Coinbase compared to Binance. This sustained negative premium reflects ongoing selling pressure in the US market, despite broader market conditions. Gerber's skepticism extends to Bitcoin advocates like Michael Saylor, especially after Strategy sold some Bitcoin, raising questions about the cryptocurrency's long-term value beyond price speculation. The negative premium suggests that while Bitcoin may be available on major exchanges, practical adoption for daily transactions remains limited, reinforcing Gerber's argument that 'That's not remotely true, but I understand the sentiment.'
Gerber has expressed growing concerns about large Bitcoin mining companies pivoting hardware and capacity toward artificial intelligence workloads. According to Benzinga reports, he stated 'Can't be a good sign for Bitcoin. GPUs have a much more important role doing AI compute versus managing a blockchain... maybe its best days are behind it...''. Mining revenue is projected to plummet from around 85% of total revenue in early 2025 to less than 20% by the end of 2026 for companies that have secured AI contracts, as stated in a CoinShares report. Additionally, analysts estimate 20% of Bitcoin miner power capacity will shift to AI and high-performance computing by the end of 2027. This trend was exemplified by Core Scientific, which converted a 300 megawatt facility in Pecos, Texas from Bitcoin mining to an AI data-center campus in April, with second-quarter filing showing colocation revenue rising to $136.7 million while digital asset self-mining revenue fell to $21.5 million. For Gerber, the key consideration remains practicality: if mining resources are increasingly diverted to artificial intelligence, proponents of Bitcoin may need to reassess the strength of its long-term investment appeal.
