A prominent economist has once again rebuked the debt-driven Bitcoin purchasing approach of Michael Saylor’s Strategy Inc. despite the firm’s declining stock price.
Noted economist Peter Schiff contended that Strategy Inc.’s choice to embark on an acquisition rampage of the original cryptocurrency has resulted in shareholder dilution, decreasing the value of the company’s BTC assets.
BTC Premium Decreased By 85%
In a recent X post, Schiff shared his viewpoint on the Saylor-led firm’s Bitcoin investment approach as the company’s share price and Net Asset Value (NAV) premium diminished.
The distinguished economist pointed out that despite capitalizing on Bitcoin purchases, Strategy Inc.’s stock has lagged.
“Today, Saylor flaunted his leveraged Bitcoin acquisitions yielding a BTC return of 6.9% thus far in 2025. However, the $MSTR share price has dropped 6% this year,” Schiff stated in a post.
The economist further remarked that significant dilution has eroded shareholder worth, “leading to an 85% collapse in the premium of its crypto assets.”
Today, @saylor flaunted his leveraged Bitcoin acquisitions yielding a BTC return of 6.9% thus far in 2025. Nonetheless, the share price of $MSTR is down 6% in 2025, while substantial dilution has obliterated shareholder value, leading to an 85% decline in the premium of its Bitcoin assets.
— Peter Schiff (@PeterSchiff) February 24, 2025
A Bitcoin enthusiast replied to Schiff’s post, expressing agreement with the economist’s skepticism toward Strategy Inc. However, the crypto investor contested the claim of an 85% premium collapse, stating that the “assertion appears inaccurate.”
“With 499,096 BTC at approximately ~$97,514 each, that totals $48.7 billion. If MSTR’s stock is at roughly $297.50 today with around 290 million shares, the market capitalization equates to $86.3 billion—a premium of 77%. Even at recent peaks, such as 90%, an 85% decline would bring it close to 13%, or $55 billion—far below current valuations. The premium’s down, but not wrecked,” the Bitcoin enthusiast clarified.
Critic Of The Debt-Driven Strategy
One of the factors that led Schiff to dismiss the Bitcoin acquisitions by Strategy, Inc. is the reliance on debt funding. The economist is in disagreement with Saylor’s approach of financing BTC acquisitions through convertible debt.
“It seems the new $MSTR convertible notes aren’t being well-received. Shares have dropped 4.5% today, even with Bitcoin rising 2.5%,” Schiff remarked.
Schiff has been quite vocal in his criticism of the debt-fueled Bitcoin buying, stressing that excessive debt could pose risks once the BTC price declines.
“When MSTR is valued lower than its holdings, the game is over, as liquidating MSTR shares to acquire crypto will lead to a negative Bitcoin yield,” the economist elaborated.
Previously, Schiff suggested that the repayment of the firm’s debts could present challenges for Strategy, Inc. during a downturn in BTC prices.
BTC Acquisition Approach
Strategy Inc. has faced severe backlash for its BTC acquisition strategy. Nevertheless, the firm remains unfazed by its critics and continues to enhance its digital asset portfolio.
In a statement, Strategy Inc. reported it has recently acquired 20,356 Bitcoins valued at around $1.99 billion, raising its BTC holdings to 478,740 coins with a combined value of $44 billion.
Featured image from Pexels, chart from TradingView
