Peter Schiff, a well-known critic of Bitcoin, has once again criticized MicroStrategy founder Michael Saylor for the company’s decision to purchase BTC on leverage. MicroStrategy recently announced its latest Bitcoin purchase, acquiring 9,245 BTC for $623 million. This purchase now means that the company holds over 1% of Bitcoin’s total supply, which has been widely celebrated by the crypto community.
However, Schiff was not impressed and took the opportunity to criticize Saylor. He described MicroStrategy’s latest purchase as a continuation of “reckless leveraged buying” by its Bitcoin-focused founder. Schiff has previously warned that MicroStrategy will incur severe losses when the price of Bitcoin drops. He predicts that if Bitcoin hits $20,000, the company will lose $3.25 billion on its investment, and if it drops to $10,000, the losses will increase to $5.5 billion. Schiff believes that Bitcoin’s price will drop further now that MicroStrategy is no longer bidding for it.
Interestingly, Schiff’s negative comments about Bitcoin have often preceded a reversal in its price. Since Schiff’s latest tweet, Bitcoin has gained more than 6% and is currently trading at $67,250.
This is not the first time that Schiff has publicly attacked Michael Saylor and his Bitcoin position with MicroStrategy. In December 2022, Schiff claimed that Saylor’s “madness” would drive the company out of business. However, this prediction has not materialized, and MicroStrategy’s unrealized BTC profit has significantly grown. The company currently holds $6.8 billion of potential profits, with the price of BTC now more than 90% higher than its average purchase price of $35,160 per bitcoin.
It’s important to note that this article provides informational content and should not be considered financial advice. The views expressed are the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to conduct thorough research before making any investment decisions, as The Crypto Basic is not responsible for any financial losses.