Longtime gold investor and Bitcoin critic Peter Schiff called Strategy Inc.’s Bitcoin-only approach a “scam” on Sunday and publicly challenged Michael Saylor for a live debate at Binance Blockchain Week in Dubai this December.
Schiff said the company’s recent gains are largely tied to the Bitcoin market price and warned that the company’s financial structure could fail if investor sentiment changes.
Schiff’s Core Responsibilities
According to Schiff, most of Strategy’s reported profits have not been realized and the company’s financing plans are at risk.
He publicly criticized the company, saying, “MSTR’s entire business approach is a fraud. No matter how Bitcoin performs, I expect MSTR will eventually go bankrupt.”
MSTR’s entire business model is a scam. Saylor and I will be speaking at Binance Blockchain Week in Dubai in early December. i challenge @Sailor Let’s discuss this proposal with me. Whatever happens to Bitcoin, I believe. $mstrer You end up going bankrupt. Let’s go!
— Peter Schiff (@PeterSchiff) November 16, 2025
He pointed to the company’s third quarter results (net income of $2.8 billion, diluted EPS of $8.42) as an example of revenue coming from Bitcoin’s growing market capitalization rather than steady business operations.
Preferred stocks sold at high yields may never produce the promised returns, which could trigger a massive sell-off in yield funds, Schiff said.
According to Strategy’s own report, it held approximately 640,808 BTC as of the end of October, with a total cost of approximately $47.44 billion and an implied cost per coin of approximately $74,032.
MSTR’s business model relies on income-driven funds purchasing “high-yield” preferred stock. However, the published rate of return is not actually paid out. Once fund managers realize this, they will abandon priorities and assets. $mstrer No more can be issued, and a death spiral begins.
— Peter Schiff (@PeterSchiff) November 16, 2025
The company reported a 26% year-to-date BTC return, and stated that BTC revenue so far in 2025 is close to $13 billion.
These numbers help explain why the company posted strong accounting profits even while its core software business generated modest revenue.
Discussion call attracts attention
Schiff’s challenge coincided with Saylor’s speaking engagement at a conference in Dubai, turning what was supposed to be a routine appearance into a potential public showdown.
Market observers said the debate will be closely watched by investors, regulators and other corporate issuers who have been weighing their Bitcoin exposure.
Some analysts say that while this strategy is risky, it offers investors a way to gain leveraged exposure to Bitcoin through a public company.
Others agree with Schiff that accounting and financing choices expose shareholders to sudden changes.
Saylor and Strategy did not immediately accept or decline an invitation to discuss in public comment.
Featured image from Unsplash, chart from TradingView
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