Once again, the debt-fueled strategy for acquiring Bitcoin put forward by Michael Saylor’s Strategy Inc. is facing scrutiny, with its decreasing stock prices adding fuel to the fire.
Economist Peter Schiff has been vocal in critiquing the company’s aggressive pursuit of Bitcoin, suggesting that this approach has led to significant dilution for shareholders, thereby reducing the premium of the firm’s BTC holdings.
BTC Premium Plummets by 85%
In a recent social media post, Schiff offered his insights on Strategy Inc.’s bold investment in Bitcoin, pointing out that the company’s share price and Net Asset Value (NAV) premium have both taken a hit. According to Schiff, the stock hasn’t performed up to expectations, despite using leverage for Bitcoin purchases.
"Today, Saylor boasted about his leveraged Bitcoin purchases bringing in a BTC yield of 6.9% so far in 2025. Yet, the share price of $MSTR has fallen by 6% this year," Schiff highlighted.
He further elaborated that the immense dilution has slashed the value for shareholders, noting that "the premium on its crypto holdings has plummeted by 85%."
One Bitcoin enthusiast chimed in on Schiff’s post, agreeing with some points but questioning the claimed drop in premium. "With 499,096 BTC valued at approximately $97,514 each, that amounts to $48.7 billion. If MSTR’s shares are around $297.50 today with about 290 million shares, its market cap hits $86.3 billion, indicating a 77% premium. Even at recent peaks of 90%, an 85% decrease should land it near 13%, or $55 billion—significantly below current figures. The premium has declined but isn’t entirely wiped out," the enthusiast explained.
Skepticism Over a Debt-Fueled Approach
Schiff remains skeptical about Strategy Inc.’s financing methods, especially the use of debt to fund Bitcoin acquisitions. He has consistently critiqued Saylor’s strategy of securing Bitcoin through convertible debt.
"The new $MSTR convertible bonds don’t seem to be attracting much confidence. Shares dropped by 4.5% today despite Bitcoin rising by 2.5%," Schiff pointed out.
He’s particularly concerned about the potential dangers of excessive debt, especially if Bitcoin’s value drops sharply. "When MSTR trades below the value of its holdings, the situation deteriorates quickly, and selling shares to buy crypto could yield a negative Bitcoin return," Schiff warned.
He had previously commented that Strategy Inc. might find itself in a bind when it comes time to repay debt if Bitcoin prices take a downturn.
BTC Acquisition Strategy
Despite facing heavy criticism, Strategy Inc. remains undeterred in its pursuit of Bitcoin. The firm recently announced the purchase of 20,356 Bitcoins, worth an estimated $1.99 billion, bringing its total holdings to 478,740 coins valued at approximately $44 billion.
The company seems set on its path, undaunted by skepticism and committed to expanding its cryptocurrency assets further.
Featured image from Pexels, chart from TradingView.
