Renowned crypto skeptic, Peter Schiff, has once again turned his attention towards MicroStrategy, led by Michael Saylor.
In a recent analysis, Schiff issued a strong caution about MicroStrategy’s shares (MSTR), which have recently surged to an all-time peak following the company’s ambitious vision to turn itself into a trillion-dollar Bitcoin [BTC] institution.
This instance underscores Schiff’s continual doubts concerning companies deeply entrenched in cryptocurrency, particularly BTC.
On October 22, He posted a message on X (formerly Twitter), stating,
“$MSTR is potentially the most overpriced stock in the MSCI World Index. The aftermath of its eventual crash would be truly devastating!”
Nevertheless, the advisory was mostly taken with reservation, as noted by CJ Konstantinos in a recent article.
Despite this reaction, Schiff persisted in presenting his stance, reiterating his key points and contending,
“Bitcoin lacks a yield. You can vend it for capital gains, engage in call writing activities to generate revenue, but Bitcoin inherently has no yield. Moreover, ownership in an ETF results in custody fees.”
What Drives Schiff’s Opposition to Bitcoin?
Being a long-standing advocate for gold and a vocal adversary of cryptocurrencies, Schiff has consistently aired his concerns regarding Bitcoin.
He frequently posits that BTC is a speculative asset devoid of the intrinsic value synonymous with conventional investments like gold.
These assertions have propelled him into a significant role within the ongoing discourse between Bitcoin supporters and adherents of traditional financial practices.
Contrarily, MicroStrategy’s strategic shift towards BTC has yielded remarkable profits.
Over the past quartet of years, the company’s market capitalization has soared from $1.5 billion to in excess of $40 billion. This surge is mainly attributed to Michael Saylor’s audacious move to make substantial investments in Bitcoin.
Such a maneuver has established MicroStrategy as a pivotal player in the Bitcoin sphere, commanding a stash of 252,220 BTC.
Schiff’s Sarcastic Dig at Saylor
During a recent discussion revolving around the BTC confiscated from the Silk Road marketplace, Peter Schiff humorously aimed a jest at Michael Saylor.
Schiff facetiously suggested that Saylor should perhaps consider borrowing the $4.3 billion worth of Bitcoin from the government to further amplify MicroStrategy’s already significant BTC hoardings.
This light-hearted comment underscores Schiff’s ongoing critique of Saylor’s aggressive Bitcoin strategy, while subtly ridiculing the company’s steadfast commitment to expanding its cryptocurrency portfolio.
Amidst these deliberations, MicroStrategy’s stock value saw a modest uptick of 0.30%, hitting $219.70. This mirrors a secure investor faith in the firm’s BTC-centric approach.
Conversely, Bitcoin experienced a minute 0.93% dip within the last day, with its valuation stabilizing at $66,947.37 at the time of publication, as per CoinMarketCap.