Peter Schiff Slams Michael Saylor’s Bitcoin Strategy Amid $62.6B Holdings

Bitcoin critic Peter Schiff has reignited his long-running feud with MicroStrategy Chairman Michael Saylor, calling the company’s Bitcoin strategy a “complete fraud” destined for bankruptcy. His latest remarks come after MicroStrategy announced it now holds 582,000 BTC—worth over $62.6 billion—following an additional $110 million Bitcoin purchase.

With an average cost basis now above $70,000 per BTC, the company is currently sitting on a 53.65% unrealized gain. But Schiff argues that the strategy’s success is dangerously reliant on Bitcoin’s price staying elevated. If BTC dips below the cost basis, the company could face mounting losses, particularly since a significant portion of the Bitcoin was bought using borrowed funds.

Schiff warns of a potential “death spiral” scenario, where falling prices could trigger forced liquidations, especially if the value of the collateral supporting MicroStrategy’s debt declines. With a market cap of roughly $108.1 billion, much of which is tied directly to its Bitcoin holdings, any downturn in crypto markets or MicroStrategy’s stock could spell serious trouble.

Saylor, undeterred, continues to double down on his Bitcoin thesis, famously promoting a “Bitcoin forever” narrative. But Schiff contends that such a high-leverage strategy only works in a continuous bull market—an unrealistic assumption in the volatile world of digital assets.

While Saylor sees Bitcoin as the ultimate store of value, critics like Schiff view MicroStrategy’s strategy as a risky, leveraged bet that could unravel quickly if market conditions turn. The debate underscores ongoing concerns about institutional exposure to cryptocurrency and the growing risks tied to Bitcoin-heavy balance sheets.

As the market watches BTC’s next move, the clash between conviction and caution intensifies, spotlighting the fine line between visionary investment and financial overreach.