Economist Peter Schiff warned of complacency among Bitcoin (CRYPTO: BTC) enthusiasts on Tuesday, pointing to Strategy Inc.’s (NASDAQ:MSTR) ongoing market struggles.
Schiff Sounds Warning Bell
Schiff said on X that the Michael Saylor-led company has collapsed nearly 80% from its all-time highs, with a 20% decline over the last five days.
“The biggest Bitcoin owner and its bridge to Wall Street, is collapsing,” he added.
The Bitcoin critic also pointed out problems with Strategy’s flagship offering, the Perpetual Stretch Preferred Stock (NASDAQ:STRC), which was down 13% from its par value of $100.
“Bitcoiners are way too complacent,” Schiff said. “Bells don’t ring any louder.”
Strategy didn’t immediately return Benzinga’s request for comment.
Is MSTR Really Going Down?
Schiff has been a persistent critic of Strategy’s business model. Earlier this week, he predicted that Saylor’s Bitcoin bet could become the largest losing trade in history.
He previously claimed that owning MSTR stock is the “worst way” to play the Bitcoin bet, alleging that the company’s BTC acquisitions destroy shareholder value.
Strategy holds over 847,363 BTC with an average acquisition cost of $75,651 per coin. With Bitcoin currently trading around $63,000, this represents unrealized losses exceeding $11 billion.
However, SkyBridge Capital founder and prominent Bitcoin bull Anthony Scaramucci believed it to be only a temporary phase and expressed confidence that the company would be “right” just in the nick of time.
Saylor has maintained that as long as Bitcoin increases by 1.25% annually, Strategy can maintain its dividend payments on its preferred stock indefinitely and boost shareholder value.
Price Action: At the time of writing, BTC was exchanging hands at $62,728.10, down 0.66% over the last 24 hours, according to data from Benzinga Pro.
Strategy shares gained 1% in after-hours trading after closing 5.13% lower at $103.84 during Tuesday’s regular trading session.
Benzinga’s Edge Stock Rankings indicate that MSTR has underperformed with a weaker price trend across short-, medium-, and long-term timeframes.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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