Strategy Inc.’s Bitcoin Investment Approach Faces Criticism
Renowned economist Peter Schiff has once again voiced his disapproval of Strategy Inc.’s aggressive Bitcoin purchasing strategy, a move largely financed through debt. Despite the company’s falling share prices, the strategy remains under intense scrutiny.
Significant Drop in Bitcoin Premium
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In a recent discussion on social media, Schiff expressed his concerns regarding the company’s strategy, pointing out that Strategy Inc.’s stock has not performed well even as it continues to heavily invest in Bitcoin. The economist highlighted how the company’s share price and Net Asset Value (NAV) premium have both taken a hit.
Peter Schiff Criticizes Bitcoin Yield Claims
Schiff mentioned that while Michael Saylor, the CEO of Strategy Inc., boasted about achieving a 6.9% yield on Bitcoin investments in 2025, the company’s share price had actually declined by 6% within the same period.
“Today, Saylor bragged about his leveraged Bitcoin buys generating a BTC yield of 6.9% so far in 2025. However, the share price of $MSTR is down 6% in 2025,” Schiff stated.
Schiff further explained that the extensive dilution of shares has adversely affected shareholder value, causing the premium on the company’s cryptocurrency holdings to plummet by 85%.
Disputes on Premium Collapse
A Bitcoin enthusiast countered Schiff’s claims, arguing that the supposed 85% drop in premium might be inaccurate. Based on current Bitcoin prices and Strategy Inc.’s market capitalization, the enthusiast calculated a 77% premium, suggesting that while premium levels have decreased, they have not been obliterated.
Concerns Over Debt-Driven Bitcoin Purchases
Schiff has consistently criticized Strategy Inc.’s approach of using debt to fund its cryptocurrency acquisitions. The economist believes that relying on convertible debt to finance Bitcoin purchases poses significant risks, especially if Bitcoin prices decline.
Market Reaction to Convertible Notes
Schiff noted that the company’s new convertible notes were not well-received, with share prices falling by 4.5%, despite a 2.5% increase in Bitcoin’s value.
“It looks like the new $MSTR convertible notes aren’t going over too well. Shares are down 4.5% today, even with Bitcoin up 2.5%,” remarked Schiff.
The economist warned that if Strategy Inc.’s stock trades at a discount compared to its Bitcoin holdings, selling shares to purchase more cryptocurrency could result in a negative Bitcoin yield.
Current Bitcoin Acquisition Strategy
Despite criticism, Strategy Inc. remains committed to expanding its Bitcoin reserves. The company recently announced a purchase of 20,356 Bitcoins, valued at approximately $1.99 billion, bringing its total holdings to 478,740 coins worth $44 billion.
