Peter Schiff Attributes Bitcoin's Elevated Price to Michael Saylor’s Purchases, Foresees Potential Decline Amid Strategy Inc. Shifts

In a recent discussion with cryptocurrency commentator Kyle Chassé, economist Peter Schiff expressed his perspective on the current state of Bitcoin's market valuation, emphasizing the central influence of Michael Saylor and his company Strategy Inc. Schiff contended that Bitcoin's elevated price levels are largely attributable to Strategy Inc.'s ongoing acquisition of the cryptocurrency, asserting that Saylor's purchasing behavior is a primary driver behind Bitcoin's valuation. Schiff explained that it is not merely the quantity of Bitcoin accumulated by Strategy Inc. but also market participants' expectations that Saylor will maintain his buying streak, which underpins confidence in Bitcoin's price stability and growth. This belief in continued purchases by Strategy Inc. contributes significantly to sustaining Bitcoin's high valuation. However, Schiff cautioned that this dynamic may be temporary. He speculated that Saylor's capacity to continue amassing Bitcoin has limits and that the company may soon approach a point where further purchases become unfeasible. According to Schiff, this potential cessation of buying activity could prompt a loss of market faith, potentially triggering a decrease in Bitcoin's price. Furthermore, he suggested that the transition from purchasing to selling Bitcoin by Strategy Inc. would be a pivotal moment, warning that if the company begins to liquidate its Bitcoin holdings, it could incite widespread selling by other investors as well. Schiff characterized this scenario as a critical risk to Bitcoin's market stability. At the time of his comments, Strategy Inc. had recently purchased an additional 1,229 bitcoins for approximately $108.8 million, increasing its total Bitcoin inventory to 672,497 BTC. The total acquisition cost for this holding stands at $50.44 billion. The company’s current market valuation is approximately $48 billion, which is notably less than the $58 billion value assigned to its Bitcoin holdings, indicating that the stock trades at a discount relative to its net asset value. Despite these figures, the stock of Strategy Inc. has experienced a significant slump, having lost more than half its value over the past three months and materially underperforming the price appreciation of Bitcoin during the same period. In response to market pressures and skepticism, Michael Saylor has defended Strategy Inc.'s business model, underscoring its financial resilience and reliance on Bitcoin’s continued appreciation. Saylor has articulated that as long as Bitcoin appreciates at an annual rate of at least 1.25%, Strategy Inc. can sustainably distribute dividends to its shareholders and enhance shareholder value. He further emphasized that the company is structurally designed to withstand significant drawdowns — ranging between 80 to 90 percent — while remaining operational. Nevertheless, Saylor acknowledged that the company remains open to selectively selling a minor portion of its Bitcoin assets, provided such actions serve the best interests of its shareholders. This admission aligns with Schiff's concern about the potential for Strategy Inc. to begin offloading its Bitcoin holdings in the future. At the time of reporting, Bitcoin’s trading price was approximately $87,113.88, reflecting a 2.30% decrease over the preceding 24-hour period. Concurrently, shares of Strategy Inc. experienced mild declines both during regular and after-hours trading sessions, with the stock closing at $155.39 and subsequently slipping to $154.99 in after-hours trading. The ongoing depreciation of Strategy Inc.'s share price, coupled with Bitcoin’s price fluctuations, contributes to an overall weaker trend in the stock's performance across short, medium, and long-term horizons. Industry analysts continue to compare Strategy Inc.'s trajectory with other cryptocurrency treasury stocks, such as Bitmine Immersion Technologies Inc., to assess relative strengths and vulnerabilities within this niche sector.