EuroPac.com Chief Economist and Global Strategist Peter Schiff is escalating his attacks on Michael Saylor, arguing that the eventual unwinding of Strategy's Bitcoin position could prove more
EuroPac.com Chief Economist and Global Strategist Peter Schiff is escalating his attacks on Michael Saylor, arguing that the eventual unwinding of Strategy's Bitcoin position could prove more damaging to the crypto industry than Sam Bankman-Fried's collapse at FTX, and that Saylor himself could end up wearing a worse reputation for it.
"The demise of Strategy portends far greater negative consequences for Bitcoin and the crypto industry than did the collapse of FTX," Schiff wrote on X.
He went further, predicting that Saylor "will soon be viewed as an even bigger villain than SBF," and warned that "those who covered for him will have a lot of explaining to do."
The comparison is a notable escalation. FTX's failure in 2022 wiped out billions in customer funds and triggered criminal charges against Bankman-Fried.
Schiff's framing suggests he views Strategy's exposure to Bitcoin as a comparable systemic risk to the broader industry, despite the two situations involving fundamentally different structures, customer deposits at an exchange versus a public company's balance sheet bet.
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Schiff followed up with specific figures to support his case. He noted that MSTR carries a market capitalization of $29.54 billion, while the company's Bitcoin holdings are worth just over $50 billion.
By his calculation, that leaves Strategy with an unrealized loss of nearly $14 billion on its Bitcoin purchases, with the stock itself trading at less than half of what Saylor spent acquiring it.
“Not only does MSTR have an unrealized loss of nearly $14 billion on the Bitcoin it bought, but the market value of MSTR stock is worth less than half of the money Saylor spent to buy it!,” Schiff mentioned in his post on X.
When a follower suggested the numbers implied MSTR was "grossly undervalued," Schiff pushed back on that interpretation directly.
"Not really, as if MSTR tried to sell its Bitcoin, the price of Bitcoin would crash," he wrote. "Bitcoin is over-valued. But my point is that Saylor has destroyed a lot of shareholder value by buying Bitcoin. He has not created it."
Schiff also took aim at the idea that Strategy trading near its net asset value is a sign of stability.
"Until MSTR's market cap rises above the value of its Bitcoin, any Bitcoin bought by issuing MSTR shares creates a negative Bitcoin yield," he wrote in the X post, arguing that the math behind further share-funded Bitcoin purchases works against shareholders as long as the gap between market cap and Bitcoin holdings persists.
Schiff has criticized Saylor's strategy for years, but the SBF comparison marks a sharper tone than his earlier commentary.
Whether that framing holds up on how Strategy's balance sheet performs if Bitcoin's price weakness persists, the same question that has shadowed the company through prior drawdowns.
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