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Peter Schiff Says Shareholders Will Pay for Michael Saylor's BTC Obsession

Fri, 12/30/2022 - 10:41
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Godfrey Benjamin
MicroStrategy has come under intense scrutiny from Peter Schiff for its latest Bitcoin acquisition
Peter Schiff Says Shareholders Will Pay for Michael Saylor's BTC Obsession
Cover image via U.Today

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Crypto critic and world-renowned economist Peter Schiff has reiterated that the shareholders of MicroStrategy Incorporated will pay for Chairman Michael Saylor's Bitcoin (BTC) obsession. Taking to Twitter, Schiff pointed out that the shares of the company reached a 52-week low, and at its current price of $136.63, the stock is down by a massive 90% from the all-time high (ATH) it attained back in February 2021.

Peter Schiff is arguably the most vocal critic of the premier digital currency and is known to always call out every investment move by MicroStrategy and Michael Saylor. Known as a business intelligence and software firm, MicroStrategy became a proponent of Bitcoin when it started accumulating the digital currency back in August 2020.

Thus far, MicroStrategy has garnered as much as 132,500 Bitcoin units for approximately $4 billion. The majority of these funds were purchased using the firm's excess balance sheet funds, and over the years, MicroStrategy has had to issue Senior Convertible Notes, a debt instrument, to acquire the digital assets.

While still the chief executive officer of the company, Michael Saylor nurtured the Bitcoin ideology riding on the fact that the technology powering the cryptocurrency is fit to drive a massive price valuation in the near future.

MicroStrategy has no sell-off plans

Since MicroStrategy started accumulating the digital currency, it has maintained that it has no sell-off plans; however, U.Today reported that the firm sold off 704 Bitcoins for approximately $11.8 million at a loss on Dec. 22 in order to get a tax benefit.

Besides this, MicroStrategy has highlighted that its BTC assets will remain on its balance sheet for the foreseeable future, a move Peter Schiff often criticizes. As a company with deep exposure to Bitcoin, MicroStrategy's share slump is reflecting the bearish sentiment brought on by the ongoing crypto winter.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.