Peter Schiff Says Saylor’s Bitcoin Treasury Model A “Fraud”

Michael Saylor’s Bitcoin treasury strategy is a “fraud” that will end in bankruptcy, Peter Schiff said.

The gold advocate and long-time Bitcoin critic slammed Saylor’s company, Strategy (formerly MicroStrategy), in a series of posts on X, intensifying his years-long feud with the crypto industry’s most prominent corporate investor.

“MSTR’s entire business model is a fraud,” he said. “Regardless of what happens to Bitcoin, I believe $MSTR will eventually go bankrupt.” 

MSTR’s entire business model is a fraud. Saylor and I will both be speaking at Binance Blockchain Week in Dubai in early December. I challenge @saylor to debate this proposition with me. Regardless of what happens to Bitcoin, I believe $MSTR will eventually go bankrupt. Let’s go!

— Peter Schiff (@PeterSchiff) November 16, 2025

Schiff challenged Saylor to a debate during the Binance blockchain week in December, which both of them are set to attend. 

MSTR ‘Death Spiral’ Incoming

Schiff argued in another X post that Strategy’s business model relies on “income-oriented funds buying its ‘high-yield’ preferred shares,” warning that those yields ”will never actually be paid.”

Once fund managers realize this, Schiff said they will dump Strategy’s preferred shares and the company won’t be able to issue any more. This, the Bitcoin critic concluded, will set off an MSTR “death spiral.” 

Schiff’s comments come after Strategy shares plunged 30% in the past month amid a steep crypto market correction. It’s also down more than 51% in the past six months, according to Google Finance. 

The plunging share price caused Strategy’s mNAV, which is the monetary premium reflected in the company’s stock price over its BTC holdings, to fall below 1 earlier this month. It has since rebounded to stand at 1.20, but is still below 2, the base level that investors see as healthy for a crypto treasury firm.

Some analysts says Strategy’s Bitcoin-accumulation model makes the company behave like a leveraged Bitcoin vehicle, and that the company’s stock (MSTR) acts almost like a call option on BTC. 

That leverage can multiply gains for investors, but can also lead to amplified losses in a market downturn. This has been seen in the broader crypto market’s latest retracement, which has put pressure on MSTR’s price. 

In the past month, Bitcoin’s price has sunk more than 10% to trade below the psychological $100K mark. Meanwhile, MSTR has plummeted over 31% during the same period,

Saylor Hints At Another Bitcoin Buy

Strategy has transformed itself from a business-intelligence firm into the world’s largest corporate holder of Bitcoin, with more than 641,000 BTC on its balance sheet, according to Bitcoin Treasuries.

Top 20 largest corporate BTC holders (Source: Bitcoin Treasuries)

Saylor hinted yesterday that Strategy is about to buy more Bitcoin, posting a snapshot of the SaylorTracker chart, adding the caption, “₿ig Week.”

Similar posts have been followed by announcements that Strategy has bought more Bitcoin. The latest tweet comes after Strategy last week refuted rumors that it was selling BTC. 

₿ig Week pic.twitter.com/a27eg6Kw4v

— Michael Saylor (@saylor) November 16, 2025

“Yes, big losses for Bitcoin and MSTR likely this week,” Schiff replied to the post.

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