Peter Schiff Calls MicroStrategy A ‘Great Short’ And Issues A Grim Warning: ‘It Can Only End In Bankruptcy’
Influential economist and market strategist Peter Schiff said shorting MicroStrategy Inc.’s (NASDAQ:MSTR) stock was a good idea, as he predicted potential bankruptcy for the company.
What Happened: During an interview with Kitco News that aired Thursday, Schiff called MicroStrategy a “great short” if one’s got the staying power, though he denied himself taking such a position.
“If you understand the dynamics of how this works, I mean you see that it can only end in the bankruptcy of MicroStrategy,” the Bitcoin critic made a bold prediction.
Making his argument, Schiff said that the company’s commitment to repay a large sum of money to convertible note holders could be a potential risk if the price of Bitcoin (CRYPTO: BTC), the asset it holds on its books, drops.