Emily Walker
A prominent advocate for gold has criticized MicroStrategy’s plan to further invest in Bitcoin and increase its cryptocurrency holdings.
Peter Schiff, who is an outspoken opponent of Bitcoin, also condemned President-elect Donald Trump’s cryptocurrency-friendly viewpoint, claiming it harms the nation.
MicroStrategy’s Bitcoin Acquisition Plans
MicroStrategy announced an ambitious strategy to invest $42 billion in Bitcoin over the next several years.
Industry experts noted that this American firm has consistently acquired significant amounts of cryptocurrency, showing resilience amid market changes.
It has been reported that MicroStrategy purchased 55,500 BTC, equating to $5.4 billion, which bolstered its presence in the crypto market.
Currently, MicroStrategy holds 386,700 BTC valued at over $36 billion, positioning it among the top corporate cryptocurrency holders worldwide.
A Risky Investment
Schiff criticized the company’s ongoing Bitcoin purchases and called the $42 billion investment plan reckless.
He labeled MicroStrategy’s strategy as “a risky gamble.”
It’s now been four weeks since $MSTR announced its three-year plan to spend $42 billion buying #Bitcoin. MSTR has already spent $10 billion. At this rate, the three-year plan will be completed in about 16 weeks. Once the buying is done, expect both Bitcoin and MSTR to crash.
— Peter Schiff (@PeterSchiff) November 26, 2024
“If they keep going at this pace, the three-year investment plan might be finished in just 16 weeks,” Schiff commented.
He predicts that the short-term influence of MicroStrategy’s initiative might eventually lead to a significant drop in Bitcoin’s valuation and impact its stock performance negatively.
Additionally, Schiff pointed out that the company’s extensive investment runs the risk of artificially boosting prices, cautioning that concentrating all resources in a single asset is typically unwise.
Schiff anticipates that MicroStrategy may struggle to sustain future Bitcoin purchases, which could have adverse implications for the firm and its shareholders.
Conversely, Michael Saylor, an executive at MicroStrategy, defended their investment strategy, asserting that the company has no intentions of selling its crypto assets anytime soon.
Saylor expressed confidence in Bitcoin’s long-term potential, encouraging other businesses to follow their lead in investment strategies.
Historically, Schiff has strongly opposed MicroStrategy’s approach to Bitcoin investment.
Trump’s Cryptocurrency Policies: Harmful for the Economy?
Schiff also criticized Trump’s intention to enact cryptocurrency-friendly regulations, suggesting it could undermine the U.S. economy.
“When the government selects market winners and losers, it typically ends poorly. The Trump administration’s endorsement of Bitcoin leads to Wall Street benefiting significantly while misallocating capital towards Bitcoin and other unproductive ventures,” Schiff remarked.
The seasoned critic believes that the nation would weaken if it aimed to become a Bitcoin superpower.
Meanwhile, proponents of cryptocurrency have dismissed Schiff’s comments as some of the most nonsensical they have seen.
Featured image from FXLeaders, chart from TradingView