Economist Peter Schiff has once again criticized companies that anchor their balance sheets to Bitcoin, this time singling out Strategy.
Citing the firm’s stock decline in 2025, Schiff argued that heavy dependence on Bitcoin can erode shareholder value during market downturns.
Hypothetical Comparison to Market Benchmarks
To support his argument, Schiff compared Strategy’s performance with that of the broader U.S. equity market. He said the company’s shares are down roughly 47.5% year to date in 2025, a decline that, in his view, would rank Strategy among the weakest performers in the S&P 500 if it were part of the index.
Although Strategy is not included in the benchmark, Schiff said the comparison underscores the risks of tying a company’s fortunes too closely to Bitcoin.
Questioning the Core Strategy Behind the Bet
Furthermore, Schiff went on to argue that the stock’s decline undermines Michael Saylor’s long-standing investment thesis.
Saylor, Strategy’s executive chairman, has consistently promoted Bitcoin as a superior corporate treasury–level asset. However, Schiff countered that Strategy has effectively redefined its corporate identity around Bitcoin exposure, thereby leaving shareholders more exposed during unfavorable market conditions.
He pointed out 2025 as a clear example of how Bitcoin-centric strategies perform during downturns. According to Schiff, falling crypto prices eliminate any perceived protective qualities of such strategies, while leverage can amplify losses when markets move lower.
Overall, these views align with Schiff’s long-standing opposition to treating Bitcoin as a reserve asset.
Strategy’s Latest Bitcoin Purchase
Schiff’s criticism followed a recent disclosure from Strategy that it had acquired an additional 1,229 Bitcoin. The purchase totaled approximately $108.8 million, with an average price of about $88,568 per coin.
Following the transaction, Strategy’s total Bitcoin holdings rose to 672,497 coins. The positions were accumulated at an average cost of approximately $74,997 per Bitcoin. At prevailing market prices, those holdings are valued at an estimated $50.44 billion. The company also reported a Bitcoin yield of 23.2% year-to-date in 2025.
Profit Figures Under Scrutiny
Although Strategy reported an unrealized gain of approximately $8.31 billion on its BTC, Schiff questioned its relevance. He noted that the gain represents about a 16% increase over five years, which he said translates to just over 3% annually. Therefore, Schiff characterized that level of return as weak relative to traditional assets.
He concluded that Strategy might have achieved better results by allocating capital to any alternative asset.
His comments have reignited debate over corporate Bitcoin adoption. On one hand, proponents argue that Bitcoin offers long-term upside and diversification benefits. On the other hand, critics contend that it introduces excessive volatility. Ultimately, Strategy’s 2025 performance has now become a focal point in that ongoing debate.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
