- Strategy buys 1,229 BTC, taking total holdings to 672,497 coins.
- Peter Schiff criticizes the company’s Bitcoin investment strategy.
- Schiff says that Strategy would have gained more if it had invested in some other assets.
The aggressive Bitcoin accumulation of Michael Saylor’s Strategy (formerly MicroStrategy) has been making headlines for months, but not all experts are convinced that it’s a smart move. Peter Schiff, a renowned economist and Bitcoin critic, has been warning investors about the dangers of cryptocurrency investing, and he is now taking aim at Strategy’s Bitcoin bet.
With the company’s latest purchase of 1,229 BTC, pushing its total holdings to a staggering 672,497 BTC, Schiff is questioning the wisdom of sinking billions into the digital asset. According to him, Strategy’s Bitcoin bet has been decidedly underwhelming- just 3% average annual return. Criticizing this massive investment, Schiff noted that the company would have earned more if it had invested in something else.
Strategy’s Risky Bitcoin Bet Under Fire: Peter Schiff Raises Voice
In an X post today, crypto critic Peter Schiff has shared a scathing criticism of Strategy’s Bitcoin accumulation moves. The company’s five-year Bitcoin buying spree has yielded surprisingly modest returns.
While many industry experts praise the largest public BTC holder’s investment strategy and others attempt to follow its strategy, Peter Schiff criticizes it. In his tweet, he noted that the company has managed to rack up a “paper profit” of just 16% on an average purchase price of $75,000 per Bitcoin, despite investing heavily in the cryptocurrency. This translates to an average return of around 3%, a paltry performance that pales in comparison to other investment options.
As Peter Schiff pointedly noted, Michael Saylor’s Strategy would have been better off investing in almost any other asset class instead of Bitcoin. His tweet read,
“Strategy has been buying Bitcoin for five years. With an average cost of $75K, the company has a “paper profit” of just 16%. That’s an average annual return of just over 3%. MSTR would have been much better off had Michael Saylor bought just about any other asset instead of Bitcoin.”
While Strategy’s Bitcoin gamble hasn’t paid off much, Peter Schiff’s statement carries much weight. However, crypto enthusiasts and Bitcoin advocates continue to praise Strategy’s crypto initiatives. As the market evolves, the company’s Bitcoin strategy will likely remain a subject of scrutiny and debate.
Strategy Continues Its Bitcoin Purchase
In the latest Bitcoin buy, Strategy has accumulated 1,229 BTC to its portfolio. With this purchase, the company’s total holdings have reached 672,497 BTC. This purchase, valued at $108.8 million, has brought the company’s year-to-date return on its Bitcoin investments to 23.2%.
The purchase came following intense speculation of a potential buy as Saylor hinted at it with an “orange dots” post on his X account. The “orange dot” post on X has become a familiar harbinger of Strategy’s BTC buys. Sure enough, after this latest post, investors were expecting another purchase by the company-and they weren’t disappointed.
The Strategy stock (MSTR) is currently trading near its Bitcoin Net Asset Value (mNAV), while the company has also built a substantial cash reserve following a successful equity issuance. This combination suggests that the company is positioning itself for potential future Bitcoin purchases. However, Peter Schiff’s criticism takes it to another side, with many now wondering if the BTC treasury platform’s decisions were right.
