Renowned Bitcoin critic Peter Schiff reiterates his predictions regarding Michael Saylor's Bitcoin accumulation strategy, suggesting it could lead to significant financial issues.
Criticism of Saylor's Strategy
Peter Schiff argues that Michael Saylor's aggressive Bitcoin accumulation, largely funded by convertible notes, is unsustainable. Currently, the company Strategy holds 499,096 BTC, with an average purchase price of about $66,000.
Debt Issues of Strategy
The real problem, according to Schiff, is the company's stock price. Recent convertible notes have a conversion price of $433.43. If the stock remains below that level, the company may be forced to sell Bitcoin to pay creditors.
Potential Consequences for the Company and Bitcoin
Schiff is skeptical of any potential recovery. He believes that selling Bitcoin to buy back shares would only crash Bitcoin further and increase Strategy's financial pressure. He sees significant risks if Bitcoin's price does not climb considerably.
Peter Schiff posits that Michael Saylor's strategy is fraught with risks. A possible Bitcoin collapse could put both the cryptocurrency and Strategy’s shares under pressure, which the company might not withstand.
