EuroPac.com Chief Economist Peter Schiff escalated his criticism of Michael Saylor, arguing that the eventual unwinding of Strategy's Bitcoin position could prove more damaging to the crypto industry than Sam Bankman-Fried's collapse at FTX. Schiff predicted that Saylor himself could end up wearing a worse reputation than SBF. The comparison marks a notable escalation in Schiff's long-running criticism of Saylor's Bitcoin acquisition strategy, with FTX's failure in 2022 having wiped out billions in customer funds and triggered criminal charges against Bankman-Fried.
Peter Schiff Compares Strategy Collapse Risk to FTX Failure
"The demise of Strategy portends far greater negative consequences for Bitcoin and the crypto industry than did the collapse of FTX," Schiff wrote on X. He went further, predicting that Saylor "will soon be viewed as an even bigger villain than SBF," and warned that "those who covered for him will have a lot of explaining to do."
Schiff's framing suggests he views Strategy's exposure to Bitcoin as a comparable systemic risk to the broader industry, despite the two situations involving fundamentally different structures: customer deposits at an exchange versus a public company's balance sheet bet.
Strategy Holds $29.54 Billion Market Cap Against $50 Billion Bitcoin Holdings
Schiff provided specific figures to support his case. He noted that MSTR carries a market capitalization of $29.54 billion, while the company's Bitcoin holdings are worth just over $50 billion. By his calculation, that leaves Strategy with an unrealized loss of nearly $14 billion on its Bitcoin purchases, with the stock itself trading at less than half of what Saylor spent acquiring it.
"Not only does MSTR have an unrealized loss of nearly $14 billion on the Bitcoin it bought, but the market value of MSTR stock is worth less than half of the money Saylor spent to buy it!," Schiff mentioned in his post on X.
Peter Schiff Rejects MSTR Undervaluation Argument
When a follower suggested the numbers implied MSTR was "grossly undervalued," Schiff pushed back on that interpretation directly. "Not really, as if MSTR tried to sell its Bitcoin, the price of Bitcoin would crash," he wrote. "Bitcoin is over-valued. But my point is that Saylor has destroyed a lot of shareholder value by buying Bitcoin. He has not created it."
Schiff also took aim at the idea that Strategy trading near its net asset value is a sign of stability. "Until MSTR's market cap rises above the value of its Bitcoin, any Bitcoin bought by issuing MSTR shares creates a negative Bitcoin yield," he wrote in the X post, arguing that the math behind further share-funded Bitcoin purchases works against shareholders as long as the gap between market cap and Bitcoin holdings persists.
Schiff has criticized Saylor's strategy for years, but the SBF comparison marks a sharper tone than his earlier commentary. Whether that framing holds up depends on how Strategy's balance sheet performs if Bitcoin's price weakness persists, the same question that has shadowed the company through prior drawdowns.
FAQ
What did Peter Schiff say about Michael Saylor and Strategy's Bitcoin holdings?
Peter Schiff wrote on X that the eventual unwinding of Strategy's Bitcoin position could prove more damaging to the crypto industry than the collapse of FTX, and predicted that Saylor "will soon be viewed as an even bigger villain than SBF."
What are the financial figures Peter Schiff cited for Strategy?
Schiff noted that MSTR has a market capitalization of $29.54 billion while its Bitcoin holdings are worth just over $50 billion, leaving an unrealized loss of nearly $14 billion on Bitcoin purchases, with the stock trading at less than half of what Saylor spent acquiring it.
Why does Peter Schiff reject the argument that MSTR is undervalued?
Schiff argued that if MSTR tried to sell its Bitcoin, the price of Bitcoin would crash, and stated that Saylor has destroyed shareholder value by buying Bitcoin rather than creating it, with any Bitcoin bought by issuing shares creating a negative Bitcoin yield as long as market cap remains below Bitcoin holdings value.
