MicroStrategy’s aggressive Bitcoin acquisition strategy continues to draw sharp criticism from gold advocate Peter Schiff.
In an X post on Monday, Schiff pointed out that MicroStrategy has already spent $11.5 billion of its $42 billion Bitcoin (BTC) investment plan in just over a month. He questioned the sustainability of this pace, highlighting that Bitcoin prices remain below the highly anticipated $100,000 mark.
As of Dec. 2, MicroStrategy holds approximately 402,100 BTC, which is valued at over $38 billion as of press time. Bitcoin is trading at around $96,000.
Since announcing its three-year plan to spend $42 billion buying Bitcoin on Oct. 30, $MSTR has already spent $11.5 billion, or 27.4% of the entire plan, in just over a month. @saylor is blowing through this cash quickly, yet #Bitcoin remains below $100K. I wonder who's selling.
— Peter Schiff (@PeterSchiff) December 2, 2024
MicroStrategy, led by Bitcoin proponent Michael Saylor, has positioned itself as a major institutional investor in Bitcoin. The company views Bitcoin as a value store akin to digital gold and a hedge against inflation.
Since 2020, it has converted much of its corporate reserves along with billions of dollars of debt into Bitcoin.
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Schiff’s logic
Critics like Schiff argue that this strategy is risky, especially given Bitcoin’s volatility. Schiff has long opposed Bitcoin, favoring gold as a safer investment. His latest critique suggests that such massive purchases might be unsustainable, particularly if Bitcoin doesn’t reach higher price levels.
On the other hand, Bitcoin supporters defend MicroStrategy’s strategy, emphasizing the cryptocurrency’s scarcity and potential for long-term growth.
Schiff’s critique of MicroStrategy’s Bitcoin purchases overlooks the company’s long-term strategy, which treats Bitcoin as a hedge against inflation and a scarce asset with the potential for value growth.
While Schiff focuses on Bitcoin’s current price, MicroStrategy’s approach aligns with dollar-cost averaging — a method designed to reduce the impact of market volatility over time.
Moreover, his skepticism does not consider that traditional investments, like gold, face similar criticisms regarding volatility and limited returns compared to other asset classes.
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