Peter Schiff taunts Strategy as Bitcoin bet turns red

Longtime bitcoin critic Peter Schiff renewed his attacks on Strategy after the firm slipped about $630 million underwater on its bitcoin holdings during February’s selloff.

Bitcoin’s drop below Strategy’s average cost basis of $76,037 erased roughly $47 billion in unrealised gains accumulated over the prior four months, marking the position’s first loss since purchases began in August 2020.

“If Bitcoin ever bottoms, it won’t be until after Strategy sells its last satoshi,”

Schiff wrote on X, arguing the company’s aggressive buying fuelled the rally and that slowing purchases are now weighing on prices.

The criticism targets Strategy’s core model, which relies on issuing shares above net asset value to raise capital for further bitcoin purchases, a strategy made more difficult by a sustained dip below its cost basis.

Chief executive Michael Saylor has remained defiant, reiterating that Strategy broadens bitcoin access and insisting corporate participation is essential to driving long-term adoption and higher valuations.

Saylor said roughly 15 million beneficiaries hold bitcoin exposure through Strategy via pensions, insurers and retail platforms such as Charles Schwab, and claimed the company has already provided exposure to about 50 million people globally.