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Peter Schiff has cast doubt on Bitcoin (CRYPTO: BTC) and Strategy (NASDAQ:MSTR), accusing Michael Saylor of running an unsustainable business model that he argues looks increasingly like a “fraud.”
What Happened: In a new X post, Schiff claimed Strategy is approaching collapse, alleging Saylor was “forced” to sell company stock to raise U.S. dollars, not to buy additional Bitcoin, but to cover interest and dividend obligations.
Schiff argues the company’s business model is unsustainable. Since it has no meaningful operating income, it can only continue paying dividends by issuing more preferred shares at 8%–10% unless it sells Bitcoin.
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He likened this behaviour to a Ponzi-like structure, declaring the stock “broken” and calling Saylor “the biggest con man on Wall Street.”
He also criticized mainstream financial media for presenting Saylor in a positive light, urging investors to be skeptical of commentary from public-facing personalities.
Benzinga contacted Strategy for comment but did not receive a response.
Why It Matters: Schiff reiterated his long-standing view that gold is superior to Bitcoin, arguing its value is grounded in objective physical properties and industrial utility.
Bitcoin, he says, is “purely subjective,” offering no real-world use case, one reason he believes BTC is falling even as gold rallies.
He noted that the NASDAQ remains near all-time highs, framing Bitcoin’s decline not as a risk-off move but as investors rotating out of what he calls a “fake asset” and into tangible commodities such as gold.
Meanwhile, CryptoQuant data shows Strategy currently holds 649,870 BTC, valued at more than $48.3 billion, up significantly from under 500,000 BTC in January 2025.
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