Economist Peter Schiff has launched a scathing critique of MicroStrategy's aggressive Bitcoin acquisition strategy, spearheaded by CEO Michael Saylor. Schiff contends that the enterprise would have achieved superior financial outcomes had it diversified into alternative assets rather than concentrating its resources predominantly in the cryptocurrency. This bold claim comes as MicroStrategy's substantial Bitcoin holdings, accumulated over five years, show a modest profit margin, casting a shadow of doubt on the long-term viability of its singular investment focus. The economist further speculates about the potential adverse effects should the company attempt to divest its digital currency assets.
Economist Peter Schiff Questions MicroStrategy's Bitcoin Strategy Amid Market Volatility
On November 20, 2025, economist Peter Schiff voiced strong disapproval of MicroStrategy's investment decisions, specifically targeting its extensive Bitcoin portfolio. In a widely disseminated post on X, Schiff highlighted that MicroStrategy, after dedicating more than $48 billion to Bitcoin over the past five years, has realized less than 17% in paper profits. He went on to assert that under the leadership of co-founder Michael Saylor, the company would have experienced more favorable financial positioning by investing in nearly any other asset class. Adding to his criticism, Schiff predicted a dire scenario where MicroStrategy might face collapse if it were to attempt liquidating its considerable Bitcoin reserves. The ongoing downturn in Bitcoin's value has significantly impacted MicroStrategy's financial health, with the company currently holding 649,870 BTC at an average acquisition price of $74,433. This precarious situation implies that a further 13% drop in Bitcoin's price would push MicroStrategy's investment into negative territory. Concurrently, MicroStrategy's stock has plummeted by 40% in the last month and a staggering 60% from its peak earlier in the year. Schiff's recent remarks intensify his ongoing criticism of Saylor and MicroStrategy's Bitcoin-centric model. Earlier in the week, he cautioned investors about the company's high-yield preferred shares, suggesting they were prone to misunderstanding and that dividend payments could cease if not formally declared. Despite these warnings, Saylor remains steadfast in defending the company's business approach. He maintains that MicroStrategy can perpetually sustain its dividend payments and enhance shareholder value, provided Bitcoin achieves an annual growth rate of just 1.25%. Saylor also declared that the company is structurally sound enough to withstand an 80 to 90% market drawdown. However, MicroStrategy's own disclosures have indicated that a failure to secure timely equity and debt financing might necessitate selling Bitcoin at a loss to meet financial obligations, a stance that seemingly contradicts Saylor's previous unwavering commitment to never selling Bitcoin. As of the time of reporting, Bitcoin's price stood at $86,071.65, reflecting a 6.75% decrease over the preceding 24 hours. MicroStrategy's shares, meanwhile, saw a marginal 0.21% increase in after-hours trading to $177.50, following a 5.02% decline to $177.13 during Thursday's regular trading session.
This ongoing debate underscores the inherent volatility and speculative nature of cryptocurrency investments. While bold strategies can yield significant rewards, they also carry substantial risks, as evidenced by MicroStrategy's current predicament. For investors, it serves as a crucial reminder to critically evaluate investment philosophies, consider diversification, and acknowledge the potential for rapid market shifts in emerging asset classes. The contrasting views of Schiff and Saylor highlight the diverse perspectives within the financial community regarding the role and stability of digital currencies.