Peter Schiff, a prominent financial commentator and chief economist at Euro Pacific Capital, has launched a scathing attack on Strategy, Inc. (MSTR), its founder Michael Saylor, and the mainstream financial media following a significant correction in the company’s stock.
Schiff, a notorious Bitcoin skeptic, believes the company’s highly leveraged crypto asset model is unraveling.
An orange jumpsuit?
Schiff said the financial structure behind MicroStrategy’s acquisition of digital assets is currently being unraveled.
They are causing significant declines in their stocks, bonds, and the broader crypto market.
“The financial house of cards that Mr. Saylor has built is crumbling,” Schiff said. “The per-share discount on MSTR’s Bitcoin holdings is skyrocketing, the STRC dollar is collapsing, and Bitcoin itself is collapsing, taking the rest of the crypto with it. Soon, Saylor will be trading in his orange tie for an orange jumpsuit,” Schiff quipped.
The financial community is particularly focused on the decline in STRC stock, whose rapid decline could force the company to sell further. $BTC.
On June 16, Mr. Schiff noted that STRC was trading at 93.5, meaning that “an investor who paid $100 for an investment Mr. Saylor touted as safe for retirees who prioritize principal protection has already lost 6.5%.”
By June 17, the pressure had worsened. “STRC is trading just below $89.50, which means the risk-averse retiree that @aylor convinced to buy last month is already down more than 10.5%, which equates to almost a one-year yield of 11.5%,” Schiff said.
Things started to deteriorate further for STRC, and the stock price plummeted to a low of $85.32. “To get the stock price back to $100 and issue new shares with all previous investors, MSTR would need to increase its yield to 13.5%, meaning a buyer at $85.32 would get a 17.5% yield,” Schiff warned.
Schiff noted that the company’s past sales were at premium prices. However, the current sale is at a discounted price. In fact, the company has “already lost more than $6 million on $1,550 trades.” $BTC I just bought it. ”
He claimed that the acquisition reduced his net holdings per share and created a “negative Bitcoin yield.” “So MSTR shareholders lost twice,” Schiff argued. “Even if you are bullish on Bitcoin, owning MSTR is the worst way to make that bet.”
Schiff said marketing claims that go beyond the scope of regulation could lead to legal action.
