Known economists have once again criticised Michael Saylor’s Strategic Strategy’s strategy for buying Bitcoin, a debt-fueled fuel, despite the decline in the company’s stock price.
Major economist Peter Schiff argued that Strategic’s decision to continue purchasing cryptocurrency for his eldest son led to diluting shareholders and lowering the company’s BTC premiums.
BTC Premium Down 85%
In the recent X-Post, Schiff saw the Saylor-led company’s Bitcoin investment strategy, but the company’s stock price and net asset value (NAV) premium fell.
A well-known economist pointed out that Strategy Inc.’s stocks are slowing despite leveraging Bitcoin purchases.
“Today, Saylor boasted about buying leveraged Bitcoin, which generates 6.9% BTC yields so far in 2025. However, in 2025, the $MSTR stock price has fallen by 6%,” Schiff said in a post.
The economist added that large dilutions will reduce shareholder value and “decay 85% of premiums on crypto-holdings.”
Today, @Saylor boasted about purchasing leveraged Bitcoin in 2025, which generates 6.9% BTC yields so far. However, $MSTR’s stock price fell 6% in 2025, with a massive dilution destroying shareholder value, causing premiums to collapse 85% into Bitcoin stocks.
– Peter Schiff (@peterschiff) February 24, 2025
Bitcoin enthusiast commented on Schiff’s post and commented that he agreed to economists that it was not being sold at Strategy Inc. However, Crypto investors disputed the 85% premium collapse, saying “the bill looks off.”
“At 499,096 BTC of $97,514 each, that’s $48.7 billion. For example, MSTR’s stock at $297.50 is $297.50 with 290 million shares, with a market capitalization of $86.3 billion, a 77% premium. Even at recent highs like 90%, the 85% drop is nearly 13%, or $55 billion below the current level. Bitcoin enthusiasts explained.
Skeptical about debt fuel strategies
Schiff is Bitcoin Strategy, Inc. One reason why it didn’t win the acquisition is funded by debt. The economist is at Loggerhead with Saylor’s strategy of funding the acquisition of BTC through convertible obligations.
“The new $MSTR Convertible Note doesn’t seem to work very well. Even as Bitcoin rises 2.5%, stocks are down 4.5% today,” Schiff said.
Schiff was extremely critical of debt-driven Bitcoin purchases, highlighting that if BTC prices drop, too much debt can be dangerous.
“When MSTR trades at a discount on holdings, the game is over because selling MSTR stocks to buy Crypto will result in negative Bitcoin yields,” the economist explained.
Previously, Schiff said that if the price of BTC drops, the company’s debt repayment could cause problems with its strategy.
BTC Acquisition Strategy
Strategy Inc. has received heavy criticism for its BTC acquisition master plan. However, the company continues to increase its digital currency holdings without worrying about critics.
In a statement, Strategy Inc. recently purchased 20,356 Bitcoin worth around $1.99 billion, increasing its BTC holdings to 478,740 coins, totaling $44 billion.
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