Peter Schiff Challenges Michael Saylor on Bitcoin Strategy
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Peter Schiff’s Critique of Bitcoin-Only Strategy
Renowned gold investor and staunch Bitcoin critic, Peter Schiff, recently criticized Strategy Inc. for their exclusive focus on Bitcoin, labeling the approach as “fraudulent.” He has openly invited Michael Saylor to engage in a live debate during the Binance Blockchain Week in Dubai scheduled for this December.
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Schiff expressed concerns regarding Strategy Inc.’s financial success, attributing it largely to the volatile market prices of Bitcoin. He cautioned that the company’s financial framework might crumble if investor sentiment shifts negatively.
Core Allegations by Schiff
Schiff argued that the gains reported by Strategy Inc. are mostly unrealized, highlighting the company’s financial strategies as precarious. He criticized the business model, declaring, “MSTR’s whole business approach is a fraud. Regardless of Bitcoin’s performance, I foresee MSTR facing bankruptcy in the future.”
According to Schiff, the firm’s third-quarter earnings, including a net income of $2.8 billion and a diluted EPS of $8.42, are primarily the result of mark-to-market Bitcoin increases rather than consistent business operations.
He also warned that the preferred shares marketed as high-yield might fail to deliver the expected returns, potentially prompting significant sell-offs by yield funds.
Strategy Inc.’s report revealed that it held approximately 640,808 BTC by the end of October, with a total expenditure around $47.44 billion and an implied cost per Bitcoin near $74,032.
High-Yield Shares and Financial Stability
Schiff asserted that the business model of Strategy Inc. relies heavily on income-oriented funds purchasing its “high-yield” preferred shares. He predicted that once fund managers realize the yields won’t materialize, they will sell off the shares, leading to a financial downfall for the company.
The company reported a 26% BTC yield for the year-to-date and claimed to have realized nearly $13 billion in Bitcoin gains throughout 2025. This financial performance has supported strong accounting profits despite the core software business only generating modest revenue.
The Debate Challenge Gains Traction
Peter Schiff’s debate challenge coincides with Michael Saylor’s appearance at the Dubai conference, potentially transforming their routine speeches into a highly anticipated public confrontation.
Market analysts believe that such a debate could attract significant attention from investors, regulators, and corporate entities contemplating Bitcoin exposure. With BTCUSD currently trading at $95,503, opinions vary. Some analysts view this strategy as a risky yet intriguing way for investors to gain leveraged exposure to Bitcoin through a public company, while others side with Schiff, arguing that the financial strategy poses significant risks to shareholders.
As of now, Saylor and Strategy Inc. have not publicly responded to Schiff’s invitation for a debate.
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