Peter Schiff is again criticizing MicroStrategy’s continuous Bitcoin accumulation, this time saying it would put the company out of business.
In a tweet on Thursday, bitcoin critic and prominent gold bug Peter Schiff asserted that Michael Saylor’s “Bitcoin obsession” would eventually put MicroStrategy out of business.
The economist made this claim highlighting the 90% decline in the company’s stock valuation from its all-time high in February 2021. Notably, at $136.63, it has declined by over 75% year-to-date.
While equity markets, in general, have had a challenging year due to economic tightening measures prompted by inflationary concerns compounded by supply chain issues, it has been even more difficult for companies with crypto exposure. The stocks of the latter, like MicroStrategy, have taken a significant beating owing to the volatility of the crypto markets.
Schiff, a crypto critic, warns that the decline in MicroStrategy’s valuation does not present a buying opportunity but indicates a progressing downward spiral engineered by Saylor’s love for Bitcoin.
The filing reveals that the company sold Bitcoin for the first time on December 22, about 704 BTC, but turned around to buy more on December 24, about 810 BTC. In addition to the company’s purchase of 2,395 BTC from November 1 to December 21, it led to a net buy of 2,500 BTC, as disclosed.
According to a Fortune report, Sean Farrell, head of digital-asset strategy at Fundstrat, explains that the sale was to help MicroStrategy obtain tax relief.
The latest purchases bring MicrosStrategy’s holding to 132,500 BTC at an average cost of $30,397, extending its lead as the largest corporate holder of the asset.
It is not the first time Schiff has criticized the company’s Bitcoin purchases. In June, the economist asserted that Saylor was wasting money.
However, Saylor appears undisturbed by these criticisms and continues to don the Bitcoin laser eyes on Twitter despite Bitcoin’s plummeting prices.