President of Euro Pacific Capital and bitcoin critic Peter Schiff in an interview with Kitco News called MicroStrategy "a great short bet" and predicted its bankruptcy. The entrepreneur criticized Michael Saylor's strategy of massive bitcoin purchases financed by debt.

"If you understand the dynamics of how this works, you realize that it can only end in the collapse of MicroStrategy," said Schiff.

According to him, the firm's obligations to pay large sums to holders of convertible bonds pose a potential risk in the event of a significant drop in cryptocurrency prices.

Bondholders are under a "false impression" that they have invested in bitcoin without the risk of losses and will simply get their money back, even in the event of bankruptcy, Schiff noted.

"The problem is that MicroStrategy promises to pay back so much that it won't be able to do so if the cryptocurrency price falls, because the company has no money, it spent it on bitcoins," believes the head of Euro Pacific Capital.

The only way for Saylor's company to pay off its debts will be to liquidate reserves in digital gold, Schiff believes.