Renowned gold investor Peter Schiff has publicly voiced criticism towards MicroStrategy CEO Michael Saylor following the company’s recent substantial Bitcoin acquisition. Saylor revealed that MicroStrategy purchased an additional 9,245 Bitcoin for approximately $623 million, further bolstering its total Bitcoin holdings to 214,246 BTC at an average cost of $35,160 per BTC. Schiff highlighted Bitcoin’s 15% decline from its peak, raising concerns about potential financial losses for MicroStrategy.
Schiff cautioned against the perceived volatility of the cryptocurrency market, expressing that if Bitcoin’s price were to plummet to $20,000 or even $10,000, MicroStrategy could face significant losses estimated at $3.25 billion and $5.5 billion, respectively. Despite a recent 6% decline in Bitcoin’s value, with a 30-day low of $64,300, MicroStrategy remains resolute in its Bitcoin accumulation strategy, emphasizing its belief in the cryptocurrency’s long-term value.
However, Schiff’s warnings reflect broader discussions within the investment community regarding the risks and benefits of incorporating digital assets into corporate balance sheets. His skepticism towards Bitcoin’s future prices aligns with his longstanding doubts about the asset’s stability, often citing past market crashes and the speculative nature of cryptocurrency investments as reasons for caution.
Schiff’s concerns extend to the potential impact of spot Bitcoin ETFs on market stability, suggesting that reliance on such financial products could lead to market instability and potential collapse. Additionally, in a separate incident, Michael Saylor has been linked to a YouTube Live scam where viewers were asked to scan a QR code to double their Bitcoin holdings, highlighting the prevalence of scams within the cryptocurrency space.