Peter Schiff Slams MSTR: 'Business Model Is a Complete Fraud,' Says Bankruptcy Is Inevitable
Economist Peter Schiff didn’t hold back when criticizing the Bitcoin Treasury company Strategy Inc. (NASDAQ:MSTR), while issuing a stark warning on its future.
What Happened: Schiff, a long-time Bitcoin (CRYPTO: BTC) critic, replied to a post on X by Strategy’s Executive Chairman, Michael Saylor, on Thursday. The post featured the highlights of a recent Bloomberg segment on the company’s Bitcoin stash, which now stands at 582,000, worth over $63 billion.
Schiff’s reply was blunt and did not hold back, as he accused Strategy’s business model of being “a complete fraud,” referring to the company’s pivot into becoming a proxy for Bitcoin.
While the stock has soared 3,180% over the past five years, driven by the bullish sentiment surrounding Bitcoin, Schiff believes that Strategy’s “bankruptcy is inevitable,” while adding that it’s “only a question of when.”
Strategy has yet to get back to Benzinga on requests for a comment on this matter. This piece will be updated as soon as we hear back.
Why It Matters: Schiff has been a regular critic of Bitcoin, having questioned the rationale behind the strategic Bitcoin reserve when it was first announced in March.
He believes such a move will only serve to accelerate the decline of the U.S. dollar, while adding that the “ultimate winner” will be gold.
His attacks, however, come at a time when Strategy continues to outperform even the “Mag 7” stocks by wide margins, with a 44% return over the past three months, amid substantial turmoil and uncertainties in the broader markets.
Price Action: Shares of Strategy were down 1.04% on Wednesday, trading at $387.11, and are down 1.37% after hours.
In Benzinga’s Edge Stock Rankings, Strategy scores well on Momentum, ranked at the 98th percentile, and has a favorable price trend in the short, medium and long term. Click here for deeper insights into the stock.
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Posted-In: Mag 7 Michael Saylor Peter SchiffCryptocurrency
