One of Bitcoin’s most vocal critics, Peter Schiff, has slammed Michael Saylor’s Bitcoin treasury firm (BTC), arguing that it would have delivered stronger returns had it avoided Bitcoin and allocated funds to other asset classes.
In a scathing critique posted to the X platform, Schiff suggested that, despite the huge bet on Bitcoin over the last five years, the Strategy has not generated any mind-boggling returns.
Schiff’s Brutal Take On Strategy’s BTC Bet
In the post, Schiff claimed that Strategy has been buying Bitcoin for five years now, only to record a “paper profit” of just 16%. This is because the company has an average purchase price of approximately $75,000 per Bitcoin, signaling an unrealized profit of around 16% should it decide to liquidate.
“That’s an average annual return of just over 3%. $MSTR would have been much better off had @Saylor bought just about any other asset instead of Bitcoin,” Schiff wrote.
The scathing criticism comes after the Bitcoin behemoth recently announced another huge purchase. As ZyCrypto reported, Strategy acquired 1,229 BTC last week. Its total stockpile grew to 672,497 BTC, acquired for $50.44 billion, representing an average purchase price of $74,997 per coin.
Schiff’s position underscores his well-documented skepticism toward Bitcoin as a store of value. The ardent gold bug has never missed a chance to take aim at BTC, especially during a market drawdown.
As expected, market commentators quickly lambasted Peter Schiff following his remarks.
Long-term Bitcoin holder and analyst Willy Woo indicated that the gold bug misinterpreted Strategy’s performance by assuming all Bitcoin buys were made at the same time, instead of taking into consideration the timing of each acquisition. In his opinion, this resulted in an incorrect analysis of the firm’s performance.
Crypto VC Revaz Shmertz also questioned Schiff’s analysis, pointing out that it doesn’t reflect how investment returns are calculated.
Besides Bitcoin accumulation, Strategy also recently boosted its US dollar reserves to $2.2 billion, aiming to alleviate concerns that dividend and interest obligations could eventually force a Bitcoin liquidation during a prolonged correction.
Source: https://zycrypto.com/strategy-would-have-been-better-off-buying-any-other-asset-instead-of-bitcoin-famous-skeptic-peter-schiff-quips/
