A prominent economist has once again rebuked the debt-driven Bitcoin purchasing approach of Michael Saylor\u2019s Strategy Inc. despite the firm\u2019s declining stock price<\/a>.<\/span><\/p>\n Noted economist Peter Schiff contended that Strategy Inc.\u2019s 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.<\/span><\/p>\n In a recent X post<\/a>, Schiff shared his viewpoint on the Saylor-led firm\u2019s Bitcoin investment approach as the company’s share price and Net Asset Value (NAV) premium diminished.<\/span><\/p>\n The distinguished economist pointed out that despite capitalizing on Bitcoin purchases, Strategy Inc.\u2019s stock has lagged.<\/span><\/p>\n The economist further remarked that significant dilution has eroded shareholder worth, \u201cleading to an 85% collapse in the premium of its crypto assets.\u201d<\/span><\/p>\n Today, @saylor<\/a> flaunted his leveraged Bitcoin acquisitions yielding a BTC return of 6.9% thus far in 2025. Nonetheless, the share price of $MSTR<\/a> is down 6% in 2025, while substantial dilution has obliterated shareholder value, leading to an 85% decline in the premium of its Bitcoin assets.<\/p>\n \u2014 Peter Schiff (@PeterSchiff) February 24, 2025<\/a><\/p>\n<\/blockquote>\n A Bitcoin enthusiast replied to Schiff\u2019s post, expressing agreement with the economist\u2019s skepticism toward Strategy Inc. However, the crypto investor contested the claim of an 85% premium collapse, stating that the \u201cassertion appears inaccurate.\u201d<\/span><\/p>\n \u201cWith 499,096 BTC at approximately ~$97,514 each, that totals $48.7 billion. If MSTR\u2019s stock is at roughly $297.50 today with around 290 million shares, the market capitalization equates to $86.3 billion\u2014a premium of 77%. Even at recent peaks, such as 90%, an 85% decline would bring it close to 13%, or $55 billion\u2014far below current valuations. The premium\u2019s down, but not wrecked,\u201d the Bitcoin enthusiast clarified.<\/span><\/p>\n One of the factors that led Schiff to dismiss the Bitcoin<\/a> acquisitions by Strategy, Inc. is the reliance on debt funding. <\/span>The economist is in disagreement with Saylor\u2019s approach of financing BTC acquisitions through convertible debt.<\/span><\/p>\n 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.<\/span><\/p>\n \u201cWhen MSTR is valued lower than its holdings, the game is over, as liquidating MSTR shares<\/a> to acquire crypto will lead to a negative Bitcoin yield,\u201d the economist elaborated.<\/span><\/p>\n Previously, Schiff suggested that the repayment of the firm’s debts could present challenges for Strategy, Inc. during a downturn in BTC prices.<\/span><\/p>\n 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.<\/span><\/p>\nBTC Premium Decreased By 85%<\/strong><\/h2>\n
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\u201cToday, 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,\u201d Schiff stated in a post.<\/span><\/h4>\n<\/blockquote>\n
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Critic Of The Debt-Driven Strategy<\/strong><\/h2>\n
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\u201cIt seems the new $MSTR convertible notes aren’t being well-received. Shares have dropped 4.5% today, even with Bitcoin rising 2.5%,\u201d Schiff remarked.<\/span><\/h4>\n<\/blockquote>\n
BTC Acquisition Approach<\/strong><\/h3>\n