Peter Schiff Calls Strategy’s Bitcoin Business a “Fraud” and Challenges Michael Saylor to Debate Amid Market Slump

Peter Schiff Challenges Michael Saylor as Bitcoin Falls Below $96,000

Gold investor and long-time Bitcoin critic Peter Schiff renewed his public feud with Michael Saylor and Strategy (MSTR), the world’s largest Bitcoin treasury company, calling the business model a “fraud” and challenging Saylor to a debate during Binance Blockchain Week in Dubai this December.

Schiff argued that Strategy’s reliance on income-oriented funds purchasing high-yield preferred shares is fundamentally unsustainable.

Why Schiff Sees Strategy Heading for a Death Spiral

Schiff said on X,

“MSTR’s entire business model is a fraud. Regardless of what happens to Bitcoin, I believe MSTR will eventually go bankrupt.”

He explained that the yields advertised on Strategy’s preferred shares “will never actually be paid,” noting that dividends are discretionary and undeclared payments do not accumulate.

Schiff warned that once fund managers realise this, they will sell off their holdings, preventing Strategy from issuing more debt and triggering a potential “death spiral.”

Schiff has long criticised Bitcoin’s volatility and scarcity metrics, calling the 21 million coin supply “meaningless” and even suggesting investors sell Bitcoin for silver.

He recently invited Binance founder Changpeng Zhao to debate tokenised gold versus Bitcoin, with Zhao responding that he was “in the mood for it.”

Bitcoin’s Recent Weakness Hits Strategy Hard

The timing of Schiff’s attack coincides with a downturn in both Bitcoin and crypto-treasury-focused stocks.

Bitcoin has dropped more than 20% from its all-time high above $125,000 reached in early October, briefly dipping below $99,000 before rebounding to around $94,875 on 17 November.

A flash crash on 10 October wiped out tens of billions from the market, further shaking investor confidence.

Strategy’s stock has been particularly affected, falling more than 50% since July to trade around $199.

Its multiple on net asset value (mNAV), which measures the premium of the stock relative to underlying Bitcoin holdings, fell below 1 in November but has slightly recovered to 1.21—still well below the “healthy” level of 2 preferred by treasury-focused investors.

Can Gold’s Strength Prove Bitcoin Is Too Risky

While Bitcoin and crypto treasuries struggle, gold has held firmly above the $4,000 per ounce mark, trading at roughly $4,085 after briefly dipping earlier this month.

Gold reached an all-time high of $4,380 in October, swelling to a market capitalisation of over $30 trillion before retreating to current levels.

Schiff has pointed to gold’s stability as evidence that Bitcoin remains too volatile and speculative to be a reliable corporate treasury asset.

MSTR Stock Continues to Struggle Amid Market Volatility

Strategy’s stock has fallen nearly 30% over the past month and more than 19% in the past five days alone.

Analysts attribute the decline to Bitcoin’s underperformance and the company’s recent movement of large BTC holdings to Coinbase, which weighed on investor sentiment.

As the crypto market navigates these fluctuations, Schiff’s warnings and debate challenge with Saylor put renewed focus on Strategy’s high-risk, Bitcoin-centric approach, highlighting the ongoing tension between traditional safe-haven assets like gold and the speculative nature of crypto treasuries.