Longstanding Bitcoin critic Peter Schiff reacts to MicroStrategy’s plan to purchase $42 billion worth of BTC, refers to the company’s chairman Michael Saylor as the egg man.
Yesterday, the Crypto Basic reported that MicroStrategy plans to increase its Bitcoin holdings by raising $42 billion for the upcoming BTC acquisition.
The business intelligence firm disclosed that it will raise the funds over the next three years by issuing $21 billion in equity and another $21 billion worth of fixed-income securities.
Schiff Calls Saylor ‘the Egg Man’
Interestingly, Schiff highlighted MicroStrategy’s Bitcoin acquisition plan in a recent tweet. The major Bitcoin critic shared a cautionary story relating to speculative risk, dubbed the Egg Man.
Narrating the story, Schiff said an investor who learned about egg futures aggressively acquired the asset through his broker.
According to Schiff, the investor started his acquisition spree with an initial purchase of 1,000 egg futures contracts and eventually boosted his holdings to 2 million. This raised the price tremendously from $0.25 to $1.75, representing a spike of 600%.
Given the massive surge in the price of egg futures, the investor moved to sell all 2 million contracts only to discover that he had been the only buyer of the asset, making him the egg man.
Notably, Schiff is suggesting that Saylor might find himself in the same situation as the egg man due to his aggressive Bitcoin acquisition strategy.
“Michael Saylor is the Egg Man,” Schiff remarked.
Previous Criticism
The financial commentator has been a major critic of Saylor and MicroStrategy due to their heavy exposure to Bitcoin. In August, he warned that this exposure might crash MicroStrategy below its competition over the next four years.
Schiff issued the forecast after Saylor claimed MicroStrategy’s stock had soared 995%, surpassing other assets like S&P 500, Gold, and Bonds since August 2020.
Additionally, Schiff forecasted earlier this year that MicroStrategy’s ‘leverage buying’ of Bitcoin might eventually lead to its doom.
Saylor and MicroStrategy Remain Bullish on Bitcoin
Despite Schiff’s negative projections and comments, Saylor has continued to lead MicroStrategy’s Bitcoin acquisition spree. This move aligns with his ambitions to make MicroStrategy a Bitcoin Bank in the future.
Interestingly, the company has been making major progress toward achieving this goal, as it currently holds 252,220 BTC. With Bitcoin trading at $69,219, MicroStrategy’s 252,220 Bitcoin portfolio is worth $17.45 billion.
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