Peter Schiff Criticizes Michael Saylor's Bitcoin-Only Strategy, Predicts MicroStrategy Bankruptcy, and Calls for Debate
Peter Schiff has publicly labeled Michael Saylor's Bitcoin-only strategy as fraudulent and predicted that MicroStrategy (MSTR) will face bankruptcy. He has challenged Saylor to a live debate during Binance Blockchain Week in Dubai in early December.
Schiff argues that MicroStrategy's business model depends on income funds purchasing high-yield preferred shares with yields that, according to Schiff, will never be paid. He warns that this could trigger a death spiral and leave the company unable to issue further debt. Furthermore, he emphasizes that dividends are discretionary and currently undeclared; if dividends do not accumulate, this would negatively affect MSTR's financial standing.
In addition to challenging Saylor, Schiff has invited Binance founder Changpeng Zhao to debate the merits of tokenized gold versus Bitcoin. Zhao has responded that he is interested and "in the mood for it."
Market-wise, MSTR stock has declined over 19% in five days and approximately 30% over the past month, influenced by Bitcoin price fluctuations and reports of large Bitcoin transfers to Coinbase. At press time, Bitcoin was trading around $95,384, after dipping to $92,890 on November 17 and previously breaching a $95,500 pivot.
This move continues Schiff's long-standing skepticism about Bitcoin, including his belief that Bitcoin's 21 million cap is meaningless and that Bitcoin should be compared to silver rather than gold.
