A well-known economist again criticized the debt-driven Bitcoin acquisition strategy for Michael Saylor’s Strategy Inc. Despite the company’s Rermain share price.
Leading economist Peter Schiff claimed that Strategy Inc.’s decision to go on a purchase of the first -born Cryptocurrency has led to shareholder dilution, which has reduced the premium on the company’s BTC.
BTC Premium down by 85%
In a new one X postSchiff took hold of the Saylor-led company’s Bitcoin Investment Strategy while the company’s share price and net asset value (NAV) Premium decreased.
The prominent economist found that Strategy Inc.’s share has underperformed despite the use of Bitcoin purchases.
“Today, Saylor scored about its leverage Bitcoin purchases that generated a BTC return of 6.9% so far in 2025. But the $ MST share price is down 6% in 2025,” Schiff said in a post.
The economist added that the huge dilution has reduced the shareholder’s value, “which caused the premium to its crypto holdings to collapse by 85%.”
Today, @Saylor boasted about his leverage bitcoin buys a BTC return of 6.9% so far in 2025. But the share price of $ mstrers Is down 6% in 2025, while massive dilution has destroyed the shareholder value, which caused the premium for its Bitcoin holding to collapse with 85%.
– Peter Schiff (@Peterschiff) February 24, 2025
A Bitcoin -Hobbyist commented on Schiff’s post and said he agrees with The Economist not to be sold with Strategy Inc. But the Kryptoinvestor disputed 85% premium collapse and said “the claim seems to be off.”
“With 499 096 BTC at ~ $ 97,514 each, it is $ 48.7 billion. MRST’s share on, says, $ 297.50 today with ~ 290 million shares is a market value of $ 86.3 billion – 77% premium. Even at the latest heights as 90%, an 85%case would leave it close to 13%, or $ 55 billion – road below current levels. The premium is down, not grated, ”explained Bitcoin -Hobbyist.
Skeptics about the debt -driven strategy
One of the reasons why Schiff did not buy into Bitcoin Acquisition of Strategy, Inc. is funded by debt. The economist is in Loggerhead with Saylor’s strategy to finance the BTC acquisitions through convertible debt.
“It looks like the new $ MRT convertible notes are not going too well. The shares drop by 4.5% today, even with Bitcoin up 2.5%, ”Schiff said.
Schiff has been very critical of the debt-driven Bitcoin purchase and emphasized that too much debt can be dangerous when the BTC price drops.
“When MSTR is shopping for a discount to its holdings, the game is over, which sells MSTR shares To buy crypto will produce a negative bitcoin exchange, ”the economist explained.
Previously, Schiff quoted that the repayment of the company’s debts can cause problems for strategy, Inc. When BTC Price decreases.
BTC acquisition strategy
Strategy Inc. has received great criticism for its BTC Acquisition Master Plan. However, the company does not care about its critics and continues to increase its digital currency holdings.
In a statement, Strategy Inc. Said it recently bought 20,356 Bitcoins worth approximately $ 1.99 billion, which increased its BTC holdings to 478,740 coins by a total value of $ 44 billion.
Image from Pexels, Chart from TradingView
