Peter Schiff Critiques Michael Saylor’s $75M Bitcoin Buy, Questions Timing

TLDR

• Michael Saylor’s company, Strategy, bought an additional 855 Bitcoin for $75.3 million at an average price of $87,974.
• Bitcoin’s price fell below $75,000 shortly after Saylor’s purchase, raising concerns about the timing of the buy.
• Peter Schiff criticized Saylor, pointing out that he bought Bitcoin for $10,000 above its current market price.
• Saylor’s Bitcoin holdings now total 713,502 BTC, worth around $56 billion, despite the recent market fluctuations.
• Schiff questioned why Saylor didn’t buy Bitcoin during the weekend dip, highlighting the thin profit margin on his Bitcoin stack.

Michael Saylor’s company, Strategy, recently bought an additional 855 Bitcoin for $75.3 million. This purchase raised eyebrows, especially as Bitcoin prices dipped below $75,000 shortly afterward. Peter Schiff, a known Bitcoin critic, has taken to social media to question Saylor’s strategy, highlighting that he bought Bitcoin at a price significantly higher than its market value.

Bitcoin Purchase Raises Concerns

Saylor’s company, Strategy, purchased the 855 BTC at an average price of $87,974. This price point was well above the current market price, which has recently been hovering around $78,000. Critics have pointed out that Bitcoin had fallen below $75,000 right after Saylor’s purchase, leading many to question the timing.

Peter Schiff wasted no time in criticizing Saylor’s decision, pointing out the “math” behind the purchase.

He questioned why Saylor didn’t wait for a better price, particularly as Bitcoin dropped over the weekend.

Despite the criticism, Saylor’s total Bitcoin holdings have now reached 713,502 BTC. These holdings are now worth around $56 billion, a sum that exceeds the company’s current market capitalization of $52 billion. Even with the recent drop in Bitcoin’s price, Saylor’s position remains solid, with paper profits of $1.5 billion.

Saylor’s Bitcoin purchases have been part of a larger strategy, which has seen the company invest billions into Bitcoin over the years. The purchase of 855 BTC is just one of many investments aimed at boosting the company’s balance sheet. As Saylor has done in the past, he may continue to buy Bitcoin even when market conditions seem less favorable.

Schiff Doubts Strategy’s Timing and Math

Peter Schiff has repeatedly criticized Bitcoin and its investors, calling it a speculative asset with little intrinsic value. In response to Saylor’s latest purchase, Schiff questioned the math behind the strategy, emphasizing that the company’s Bitcoin stack has a thin profit margin. With a 2.8% profit margin, any misjudgment could potentially affect the company’s bottom line.

Schiff pointed out that the market is unpredictable, and the current purchase price could have been avoided had Saylor waited for a dip. “It’s puzzling why you didn’t buy the dip when it was right in front of you,” Schiff remarked. For him, this move may suggest either a miscalculation or a lack of foresight in Saylor’s strategy.

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