Peter Schiff says MicroStrategy shareholders will pay for Michael Saylor’s BTC obsession

Economist Peter Schiff reiterated that MicroStrategy shareholders will pay for Chairman Michael Saylor’s obsession with bitcoin (BTC). On Twitter, Schiff pointed out. that the company’s shares have hit a 52-week low, and at its current price of $136.63, the stock is down 90% from its all-time high (ATH) in February 2021.

Shares of #MicroStrategy just made a new 52-week low, down 90% from the record-high in Feb. 2021. Shareholders will pay dearly for @saylor‘s #Bitcoin obsession. Don’t make the mistake of thinking 90% off is a good buy. This isn’t just a sale, it’s a going-out-of-business sale.

– Peter Schiff (@PeterSchiff) December 29, 2022

Peter Schiff is arguably the most outspoken critic of the first digital currency and is known to denounce all investment moves by MicroStrategy and Michael Saylor. Known as a software and business intelligence company, MicroStrategy became a supporter of bitcoin when it began accumulating the digital currency in August 2020.

So far, MicroStrategy has accumulated as many as 132,500 bitcoin units worth about $4 billion. The majority of this was purchased using excess funds on the company’s balance sheet, and over the years MicroStrategy has had to issue senior convertible bills, a debt instrument, to acquire the digital assets.

While still CEO of the company, Michael Saylor nurtured the bitcoin ideology on the premise that the technology powering the crypto-currency is apt to drive massive price appreciation in the near future.

MicroStrategy has no plans to sell

Since MicroStrategy began accumulating the digital currency, it has said it has no plans to part with it. However, the company sold 704 bitcoins for about $11.8 million at a loss on Dec. 22 to take advantage of a tax break.

In addition, MicroStrategy stressed that its bitcoin assets will remain on its balance sheet for the foreseeable future, a decision often criticized by Peter Schiff. As a company with significant exposure to bitcoin, MicroStrategy’s stock drop reflects the bearish sentiment sparked by the ongoing crypto winter.