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Schiff Admits Bitcoin Won't Crash, But MSTR Strategy Is Broken
17 Jun
Summary
- Economist Peter Schiff conceded Bitcoin will not go to zero.
- Schiff claims MicroStrategy's Bitcoin acquisition strategy is broken.
- MicroStrategy recently issued shares at a discount to buy Bitcoin.
Economist Peter Schiff has made notable statements regarding Bitcoin and MicroStrategy's acquisition strategy. During a recent televised debate, Schiff conceded that Bitcoin is not going to become worthless. This admission marked a significant shift from his usual bearish predictions.
However, Schiff also critiqued MicroStrategy's approach to acquiring Bitcoin. He argued that the company's strategy, which historically relied on issuing stock at a premium to buy more Bitcoin, is now fundamentally flawed. Recent purchases involved issuing shares at a discount, a move Schiff claims dilutes existing shareholders.
MicroStrategy's recent acquisition of 1,550 BTC for $101 million was made by issuing shares at a price lower than their value. Schiff points out this contrasts with previous instances where stock sales at a premium bolstered shareholder value.
