Peter Schiff Doubles Down: Predicts Bitcoin Crash Will Sink Michael Saylor’s Strategy

Peter Schiff, a long-time Bitcoin critic, is once again warning of disaster for Michael Saylor’s Bitcoin-focused strategy. As BTC dips below $89,000, Schiff argues that Strategy, formerly MicroStrategy, is on the brink of collapse due to its aggressive Bitcoin accumulation backed by debt.

The company holds 499,096 BTC, purchased at an average price of $66,000—nearly 40% higher than Bitcoin’s current value. If BTC does not recover, Schiff warns that Strategy’s debt-driven model could unravel. The company’s most recent convertible notes have a conversion price of $433.43 per share. If Strategy’s stock stays below that threshold, it may be forced to sell Bitcoin to meet debt obligations. Schiff believes this would trigger a downward spiral, where Bitcoin’s decline drags Strategy’s stock price even lower, worsening financial strain.

Schiff is doubtful about a potential recovery, noting that while Strategy could theoretically sell Bitcoin to buy back shares, such a move would only exacerbate market pressure, further destabilizing both the company and Bitcoin’s value. In his view, it is a no-win situation: if Bitcoin fails to surge, Strategy faces bankruptcy, and even if BTC rebounds, Schiff remains skeptical about the company’s survival.

With Bitcoin’s volatility and Schiff’s dire warnings, investors are watching closely as Saylor’s high-stakes bet continues to be tested.