Economist Peter Schiff has once again spoken out against Michael Saylor’s Strategy Inc.’s plan of buying Bitcoin with borrowed money, especially as the company’s stock price keeps falling. He believes that this strategy has hurt shareholders and lowered the value of the company’s Bitcoin holdings.
BTC Down By 85%
In a recent post on X, Peter Schiff shared his thoughts on Michael Saylor’s company, Strategy Inc.’s Bitcoin investment strategy, as the company’s stock price and Net Asset Value (NAV) decreased.
Schiff pointed out that Strategy Inc.’s stock has not done well, despite their heavy investment in Bitcoin.
“Today, Saylor bragged about his Bitcoin purchases with borrowed money, saying they’ve earned a 6.9% return so far in 2025. But the share price of $MSTR has dropped 6% this year,” Schiff wrote in a post.
He also mentioned that the large increase in shares has hurt the value for shareholders, “causing the premium on its Bitcoin holdings to drop by 85%.”
A Bitcoin fan commented on Schiff’s post, agreeing with Schiff about not buying into Strategy Inc., but challenging the claim about the 85% drop in value. The crypto investor explained that with 499,096 BTC at around $97,514 each, that’s worth $48.7 billion. With MSTR stock priced at $297.50, and about 290 million shares, the company’s total value would be $86.3 billion, showing a 77% premium. Even with a recent high of 90%, a drop of 85% would leave it at about 13%, or $55 billion, which is lower than the current value but not as low as claimed. The premium is down, but not completely gone, the investor argued..
Emerging Doubts About The Debt-Based Strategy
One of the reasons Schiff disagrees with Strategy Inc.’s Bitcoin purchases is that they’re being funded by debt. The economist strongly opposes Saylor’s approach of using convertible debt to finance the Bitcoin buys.
“It seems like the new $MSTR convertible notes aren’t doing well. Shares are down 4.5% today, even though Bitcoin is up 2.5%,” Schiff said.
Schiff has consistently criticized the debt-based Bitcoin buying strategy, warning that too much debt could be risky if the price of Bitcoin falls.
“When MSTR trades at a lower price than its Bitcoin holdings, it’s over, because selling MSTR shares to buy more crypto would lead to a negative Bitcoin return,” the economist explained.
Earlier, Schiff pointed out that the company might face problems repaying its debts if the price of Bitcoin drops.
BTC Acquisition Strategy
Strategy Inc. has faced strong criticism for its Bitcoin acquisition strategy, but the company remains unfazed and continues to grow its digital currency holdings.
In a recent statement, Strategy Inc. revealed it bought 20,356 Bitcoins worth around $1.99 billion, increasing its total BTC holdings to 478,740 coins, valued at $44 billion.
(Featured image from Pexels, chart from TradingView)
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