A prominent gold supporter has condemned MicroStrategy’s investment plan to buy more Bitcoin and build crypto reserves.
Peter Schiff, a vocal critic of the original cryptocurrency, also sharply criticized President-elect Donald Trump’s pro-crypto stance, arguing that it is harmful to the country.
MicroStrategy’s Bitcoin investment strategy
MicroStrategy revealed it has a $42 billion investment strategy to buy more Bitcoin over the next few years.
Analysts said the US development company is known to purchase enormous amounts of the cryptocurrency regardless of market fluctuations.
Reports show that MicroStrategy recently purchased 55,500 BTC worth $5.4 billion, which allowed the company to strengthen its position in the cryptocurrency sector.
At the time of publication, MicroStrategy holds 386,700 BTC worth over $36 billion, making the company among the largest corporate holders of cryptocurrencies.
Threatening bet
Schiff criticized MicroStrategy’s continued purchase of digital assets, condemning a $42 billion investment plan to acquire more Bitcoin over three years.
A Bitcoin critic has described MicroStrategy’s BTC investment plan as a “dangerous bet.”
Four weeks have passed since then $MSTR announced its three-year plan to spend $42 billion on purchases #Bitcoin. MSTR has already spent $10 billion. At this rate, the three-year plan will be completed in about 16 weeks. Once your purchase is complete, expect both Bitcoin and MSTR to crash.
— Peter Schiff (@PeterSchiff) November 26, 2024
“At this rate, the three-year plan will be completed in about 16 weeks,” Schiff said.
He sees that the price escalate caused by MicroStrategy’s so-called “bold plan” will be short-term in nature and will lead to a significant drop in the BTC price and a decline in the company’s profitability share price.
Moreover, Schiff believes that the company’s large-scale purchases only cause artificial price appreciation, noting that this may pose a problem for the company because it has put all its proverbial eggs in one basket, which is not a wise idea in any investment.
BTC market cap currently at $1.88 trillion. Chart: TradingView.com
Schiff predicts that MicroStrategy may not be able to fund future Bitcoin purchases, reiterating his view that the move could hurt both the company and its shareholders.
On the other hand, MicroStrategy CEO Michael Saylor defended the company’s investment approach, saying it has no plans to sell its crypto assets in the near future.
Image: ETMarkets.com
Saylor said the company remains bullish about BTC’s future, calling on other companies to take inspiration from their investment strategy.
Historically, Schiff has been a vocal critic of MicroStrategy’s moves to buy Bitcoin.
Trump’s pro-crypto stance: harmful to the economy?
Schiff also criticized Trump’s plans implement regulations that are pro-cryptocurrency, arguing that it will weaken the country’s economic situation.
“When the government picks winners and losers, it usually picks losers. Thanks to the Trump administration’s targeting of bitcoin, Wall Street is very successful in misallocating capital to BTC and related value-destroying businesses,” Schiff said.
A staunch cryptocurrency critic believes the United States will become weaker as it becomes a Bitcoin superpower.
Meanwhile, cryptocurrency advocates dismissed Schiff’s opinions, saying it was one of the stupidest posts ever.
Featured image from FXLeaders, chart from TradingView
