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Vocal cryptocurrency critic and gold bug Peter Schiff is taking fresh shots at MicroStrategy Executive Chairman Michael Saylor.
Schiff claims that his grandest Bitcoin price predictions are mathematically unraveling.
Schiff took aim at Saylor’s extremely audacious 2025 forecast that Bitcoin would hit $1 million per coin if Strategy managed to accumulate 5% of the total circulating supply.
Strategy currently owns 3.9% of all Bitcoin. However, the economist argues that the law of diminishing returns is already severely impacting the firm's buying power and market influence.
"If buying the next 231,666 $BTC has the same impact on Bitcoin's price as buying the last 231,666, Bitcoin will be below $60,000 when MSTR finally hits 5%," Schiff argued on X (formerly Twitter).
Schiff has gone as far as claiming that U.S. financial watchdogs have been "bought and paid for with crypto money" to explain why they have not investigated Strategy yet.
"In February 2021, Saylor raised money for $MSTR to buy Bitcoin by issuing 0% convertible senior notes. Investors wanted to participate in Bitcoin's upside by owning MSTR," Schiff noted. "Now he is forced to pay 11.5%, as investors don't want Bitcoin's limited upside. They just want the yield."
The yield debt trap
Schiff has spent the last week warning that MicroStrategy is entering a dangerous financial "death spiral" due to its reliance on high-yield preferred shares.
Schiff also pushed back against the bullish defense that Bitcoin only needs to rise by 2% annually to cover the cost of the yield. He noted that this premise assumes the company stops issuing new debt. "But Saylor is actually increasing issuance," Schiff warned. "The more STRC MSTR sells, the more $BTC must rise to cover the yield."
Yet another massive purchase
Saylor, however, is completely unfazed by the growing chorus of debt-related warnings.
Strategy had acquired an additional 3,273 $BTC for approximately $255 million ($77,906 was the latest purchasing price).
The Virginia-based business intelligence firm now boasts a staggering 818,334 $BTC.
en.bitcoinsistemi.com
