{"id":15161,"date":"2025-02-26T17:31:34","date_gmt":"2025-02-26T17:31:34","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=15161"},"modified":"2025-02-26T17:31:34","modified_gmt":"2025-02-26T17:31:34","slug":"bitcoin-blunder-peter-schiff-blasts-strategy-over-stock-drop","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=15161","title":{"rendered":"Bitcoin Blunder? Peter Schiff Blasts Strategy Over Stock Drop"},"content":{"rendered":"
\n

A known economist once again criticized the debt-fueled Bitcoin acquisition strategy of Michael Saylor\u2019s Strategy Inc. despite the company\u2019s decreasing share price<\/a>.<\/p>\n

Leading economist Peter Schiff argued that Strategy Inc.\u2019s decision to go on a buying spree of the firstborn cryptocurrency has led to shareholder dilution, reducing the premium on the firm\u2019s BTC holdings.<\/p>\n

BTC Premium Down By 85%<\/strong><\/h2>\n

In a recent X post<\/a>, Schiff gave his take on the Saylor-led company\u2019s Bitcoin investment strategy while the firm\u2019s share price and Net Asset Value (NAV) premium decreased.<\/p>\n

The prominent economist noted that Strategy Inc.\u2019s stock has underperformed despite leveraging on Bitcoin buying.<\/p>\n

\n\u201cToday, 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,\u201d Schiff said in a post.\n<\/p><\/blockquote>\n

The economist added that the massive dilution has diminished shareholder value, \u201ccausing the premium to its crypto holdings to collapse by 85%.\u201d<\/p>\n

\n

Today, @saylor<\/a> bragged about his leveraged Bitcoin buys generating a BTC yield of 6.9% so far in 2025. However, the share price of $MSTR<\/a> is down 6% in 2025, while massive dilution has destroyed shareholder value, causing the premium to its Bitcoin holdings to collapse by 85%.<\/p>\n

\u2014 Peter Schiff (@PeterSchiff) February 24, 2025<\/a><\/p>\n<\/blockquote>\n

A Bitcoin hobbyist commented on Schiff\u2019s post saying he agrees with the economist about not being sold with Strategy Inc. However, the crypto investor disputed the 85% premium collapse, saying the \u201cclaim seems off.\u201d<\/p>\n

\u201cWith 499,096 BTC at ~$97,514 each, that\u2019s $48.7 billion. MSTR\u2019s stock at, say, $297.50 today with ~290 million shares is a market cap of $86.3 billion\u2014a 77% premium. Even at recent highs like 90%, an 85% drop would leave it near 13%, or $55 billion\u2014way below current levels. The premium\u2019s down, not demolished,\u201d the Bitcoin hobbyist explained.<\/p>\n

Skeptic On The Debt-Fueled Strategy<\/strong><\/h2>\n

One of the reasons why Schiff did not buy into the Bitcoin<\/a> acquisition of Strategy, Inc. is being funded by debt. The economist is at loggerhead with Saylor\u2019s strategy of financing the BTC acquisitions through convertible debt.<\/p>\n

\n\u201cIt looks like the new $MSTR convertible notes aren\u2019t going over too well. Shares are down 4.5% today, even with Bitcoin up 2.5%,\u201d Schiff said.\n<\/p><\/blockquote>\n

Schiff has been very critical of the debt-driven Bitcoin purchase, emphasizing that too much debt could be dangerous once the BTC price drops.<\/p>\n

<\/p>\n

\u201cWhen MSTR trades at a discount to its holdings, the game is over, as selling MSTR shares<\/a> to buy crypto will produce a negative Bitcoin yield,\u201d the economist explained.<\/p>\n

Earlier, Schiff cited that the repayment of the firm\u2019s debts might cause trouble to Strategy, Inc. when BTC price declines.<\/p>\n

BTC Acquisition Strategy<\/strong><\/p>\n

Strategy Inc. has received heavy criticism for its BTC acquisition master plan. However, the firm does not mind its critics and continues to increase its digital currency holdings.<\/p>\n

In a statement, Strategy Inc.<\/a> said it recently bought 20,356 Bitcoins worth around $1.99 billion, increasing its BTC holdings to 478,740 coins with a total value of $44 billion.<\/p>\n

Featured image from Pexels, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A known economist once again criticized the debt-fueled Bitcoin acquisition strategy of Michael Saylor\u2019s Strategy Inc. despite the company\u2019s decreasing share price. Leading economist Peter Schiff argued that Strategy Inc.\u2019s decision to go on a buying spree of the firstborn cryptocurrency has led to shareholder dilution, reducing the premium on the firm\u2019s BTC holdings. BTC […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-15161","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/15161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15161"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/15161\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}