Longtime Bitcoin critic Peter Schiff has once again taken aim at Michael Saylor, arguing that the Strategy co-founder and executive chairman’s Bitcoin-focused corporate strategy is beginning to unravel as cryptocurrency prices weaken.
In a post on X, Schiff claimed that “the financial house of cards Saylor built is collapsing,” pointing to declines in Bitcoin, Strategy’s stock, and the company’s recently launched preferred securities.
Schiff argued that Strategy’s per-share discount to its Bitcoin holdings is widening, while its STRC preferred stock is “tanking.” He also linked the company’s struggles to broader weakness across the cryptocurrency market, claiming that Bitcoin’s decline is dragging the rest of the sector lower.
“The financial house of cards @Saylor built is collapsing,” Schiff wrote. “Soon Saylor will trade in his orange tie for an orange jumpsuit.”
The comment is the latest chapter in a years-long public feud between Schiff and Saylor over Bitcoin’s long-term value and the wisdom of Strategy’s aggressive accumulation strategy.
Saylor turns Strategy into Bitcoin giant
Saylor transformed Strategy, formerly MicroStrategy, into the largest corporate holder of Bitcoin by using a combination of cash reserves, debt offerings, and equity sales to fund purchases of the cryptocurrency. The company has argued that Bitcoin serves as a superior treasury reserve asset and a hedge against inflation.
The strategy has inspired a growing number of publicly traded companies to add Bitcoin to their balance sheets, though it has also drawn criticism from skeptics who view the approach as excessively risky.
Schiff, an economist and gold advocate, has consistently argued that Bitcoin lacks intrinsic value and that companies heavily exposed to the cryptocurrency could face significant losses during market downturns.
He has repeatedly criticized Strategy’s financing model, particularly its use of capital markets to fund additional Bitcoin purchases.
His latest remarks come during a period of volatility for both Bitcoin and crypto-related equities. Because Strategy’s business model is closely tied to the performance of its Bitcoin holdings, movements in the cryptocurrency often have an outsized impact on investor sentiment toward the company’s shares and related securities.
Schiff questions Strategy’s valuation gap
Schiff suggested that the gap between Strategy’s market valuation and the value of its underlying Bitcoin holdings is becoming harder to justify as market conditions deteriorate. He also pointed to weakness in STRC, one of the company’s preferred stock offerings, as evidence that investor confidence may be fading.
While Schiff portrayed the recent declines as signs of a broader collapse, supporters of Saylor’s strategy have long argued that short-term price swings are inevitable and that Bitcoin should be viewed through a long-term investment lens.
Saylor himself has consistently maintained that Bitcoin is the world’s premier digital store of value and has encouraged investors to focus on adoption trends rather than day-to-day market fluctuations. Even during previous crypto bear markets, he defended the company’s approach and continued to accumulate additional Bitcoin.
The exchange highlights the stark divide between Bitcoin advocates and critics. For Schiff, the latest market weakness reinforces his long-held belief that Bitcoin is a speculative bubble. For Saylor and his supporters, periods of volatility are simply part of the asset’s maturation process.
As Bitcoin’s price continues to fluctuate, the debate over Strategy’s Bitcoin-heavy corporate model, and whether it represents financial innovation or excessive risk, is likely to remain at the center of the crypto industry’s biggest conversations.
