Peter Schiff is again criticizing MicroStrategy’s continuous Bitcoin accumulation, this time saying it would put the company out of business.
In a tweet on Thursday, bitcoin critic and prominent gold bug Peter Schiff asserted that Michael Saylor’s “Bitcoin obsession” would eventually put MicroStrategy out of business.
The economist made this claim highlighting the 90% decline in the company’s stock valuation from its all-time high in February 2021. Notably, at $136.63, it has declined by over 75% year-to-date.
While equity markets, in general, have had a challenging year due to economic tightening measures prompted by inflationary concerns compounded by supply chain issues, it has been even more difficult for companies with crypto exposure. The stocks of the latter, like MicroStrategy, have taken a significant beating owing to the volatility of the crypto markets.
Schiff, a crypto critic, warns that the decline in MicroStrategy’s valuation does not present a buying opportunity but indicates a progressing downward spiral engineered by Saylor’s love for Bitcoin.
Shares of #MicroStrategy just made a new 52-week low, down 90% from the record-high in Feb. 2021. Shareholders will pay dearly for @saylor's #Bitcoin obsession. Don't make the mistake of thinking 90% off is a good buy. This isn't just a sale, it's a going-out-of-business sale.
— Peter Schiff (@PeterSchiff) December 29, 2022
According to Schiff, the only ones to benefit from Saylor’s Bitcoin love affair are those who sold after the initial rally.
I'll give @saylor credit for one thing. Adding #Bitcoin to the balance sheet was great for those #MicroStrategy shareholders who sold their stock into the sucker's rally that followed. But its been a disaster for those suckers who bought $MSTR shares to gain exposure to Bitcoin.
— Peter Schiff (@PeterSchiff) December 29, 2022
Schiff believes that Bitcoin is worthless, expressing this in a recent interview with TD Ameritrade Network shared yesterday. According to the economist, holders should trade their Bitcoin for gold while it still has value.
“Well, it [Bitcoin] doesn’t have any value it’s down two-thirds of its market price you know anything can have a price and people are dumb enough to pay it,” Schiff said. “But my advice to people in crypto is get out. You can still get almost $17,000 for your worthless Bitcoin. I would suggest that you take it and buy some gold.”
MicroStrategy Sells Bitcoin For The First Time But Buys More
Notably, Schiff’s latest comments come after MicroStrategy revealed on Wednesday that it had added 2,500 BTC to its cache, sharing its Form 8-K filing with the US Securities and Exchange Commission.
MicroStrategy has increased its #Bitcoin Holdings by ~2,500 #BTC. As of 12/27/22 @MicroStrategy holds ~132,500 bitcoin acquired for ~$4.03 billion at an average price of ~$30,397 per bitcoin. $MSTRhttps://t.co/lcMeULcGQk
— Michael Saylor⚡️ (@saylor) December 28, 2022
The filing reveals that the company sold Bitcoin for the first time on December 22, about 704 BTC, but turned around to buy more on December 24, about 810 BTC. In addition to the company’s purchase of 2,395 BTC from November 1 to December 21, it led to a net buy of 2,500 BTC, as disclosed.
According to a Fortune report, Sean Farrell, head of digital-asset strategy at Fundstrat, explains that the sale was to help MicroStrategy obtain tax relief.
The latest purchases bring MicrosStrategy’s holding to 132,500 BTC at an average cost of $30,397, extending its lead as the largest corporate holder of the asset.
It is not the first time Schiff has criticized the company’s Bitcoin purchases. In June, the economist asserted that Saylor was wasting money.
However, Saylor appears undisturbed by these criticisms and continues to don the Bitcoin laser eyes on Twitter despite Bitcoin’s plummeting prices.
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