Peter Schiff Slams MSTR Bitcoin Strategy Over $50B Bitcoin Bet

Why the MSTR Bitcoin Strategy Is Tested During the Crypto Market Crash

Is MicroStrategy’s massive Bitcoin bet finally being tested? As the crypto slipped toward $85,555 and the wider crypto market fell nearly 4%, a sharp critique from economist Peter Schiff reignited debate around the MSTR Bitcoin Strategy. With over $50 billion deployed into BTC over five years, Schiff argues the returns look surprisingly modest at a time when gold and silver are surging.

Peter Schiff vs the MSTR Bitcoin Strategy

Peter Schiff took to X to question Michael Saylor’s long-running MSTR BTC accumulation Strategy. According to Schiff, MicroStrategy has spent more than $48–50 billion buying BTC at an average cost close to $75,000. 

Source: X (formerly Twitter) 

Despite BTC’s long-term rise, he claims MSTR’s overall unrealized gain is less than 15%. His argument is simple: for such a huge capital commitment, the payoff looks small.

When asked how gold would have performed instead, he said profits would likely be “at least double, if not more.” The timing of the tweet is important. It came during a sharp crypto sell-off, when leverage-driven liquidations wiped out over $600 million in positions in a single day.

MicroStrategy Financial Details 

Market data shows MicroStrategy stock under pressure. MSTR has fallen more than 60% over the past year, while volatility remains extremely high. Despite this, the company now holds about 671,268 coins, bought for roughly $50.3 billion. At current prices near $86,000, Bitcoin drop has narrowed unrealized gains, making Schiff’s criticism more visible during downturns.

Source: Strategy Website 

Still, Saylor remains firm. In a recent update, he confirmed that Strategy acquired another 10,645 BTC for about $980 million at an average price near $92,098. He also highlighted a BTC yield of 24.9% year-to-date, signaling continued confidence in the Michael Saylor's approach.

BTC vs Gold During Market Stress

The debate sharpens when the cryptocurrency is compared with gold. XAU/USD climbed to around $4,350, less than 1% below its all-time high. According to TradingView data, gold is up about 131% over the last five years. In contrast, Bitcoin has gained roughly 344% over the same period, but with far greater swings.

During economic uncertainty, gold benefits from falling yields and a weaker dollar. Digital asset, on the other hand, behaves more like a risk asset in the short term. This explains why Schiff’s focus is on unrealized gains rather than long-term charts. It’s volatility means timing matters more.

Silver Joins the Safe-Haven Rally

Silver is adding another layer to the argument. Prices recently held near $64, close to record levels, after a strong channel breakout. Silver is up over 100% in 2025, supported by ETF inflows and demand for hard assets. The silver–Bitcoin ratio has collapsed, showing capital rotation away from crypto toward metals.

Why Did Saylor Choose Crypto Asset?

Critics ask why Saylor chose BTC over stocks, bonds, or metals. Supporters say the MSTR Bitcoin Strategy is built on long-term scarcity, not short-term stability. Saylor believes it is digital property, not just a trade. Schiff disagrees, arguing corporate balance sheets need lower volatility and steadier returns.

There is no evidence Saylor “knows something hidden,” but his conviction sets MicroStrategy apart from traditional firms. The strategy magnifies gains in bull markets and pain during crashes.

Conclusion

The Microstrategy's approach is not failing, but it is being stress-tested. The crypto asset has outperformed gold over five years, yet short-term crashes shrink unrealized gains and fuel criticism. Gold and silver are shining in 2025, while cryptocurrency remains volatile. The real question is whether investors judge MicroStrategy on short-term swings or long-term conviction.