Emma Nelson 
MicroStrategy’s stock has experienced a significant decline in recent months, drawing sharp criticism from economist and gold advocate Peter Schiff regarding the company’s Bitcoin-centric strategy. Schiff argues that the firm’s financial health is deteriorating due to rising debt and the continued drop in Bitcoin’s value.
MicroStrategy’s
MicroStrategy’s Stock Decline and Bitcoin’s Impact on Market Performance
Peter Schiff, in a recent post on X, pointed out that MicroStrategy, which has rebranded as Strategy, has witnessed its stock price fall by over 55% since reaching its peak in November 2024. On March 10, the stock price took another nearly 10% hit, following Bitcoin’s drop to around $77,800. This latest decline occurred after the White House crypto summit, where President Donald Trump’s executive order on the Strategic Bitcoin Reserve didn’t lead to immediate government Bitcoin acquisitions.
Despite the sharp drop in stock value, MicroStrategy remains the largest corporate holder of Bitcoin, with 499,096 BTC acquired at an average price of $66,423 per Bitcoin. The total value of its Bitcoin holdings is estimated to be around $41 billion. However, the company’s market performance has been heavily impacted by the fluctuations in Bitcoin’s price.
Bitcoin Whale Activity Shows Signs of Accumulation
According to data from Santiment, large Bitcoin holders, commonly referred to as “whales” and “sharks,” have been impacting the price movements of Bitcoin. The analytics company revealed that wallets holding 10 or more BTC have accumulated nearly 5,000 BTC since March 3, despite the significant drop in prices over the past few weeks.
“Long liquidations have wiped out many leveraged traders, causing a major sell-off,” Santiment analysts observed. “However, whales have quietly started accumulating again, which could be a bullish sign if the trend continues.” Bitcoin’s price pressure has been attributed to a combination of market liquidations, regulatory changes, and broader macroeconomic challenges.
Peter Schiff’s Concerns About Debt and Financial Stability
Peter Schiff has been vocal about his concerns regarding MicroStrategy’s overreliance on Bitcoin, emphasizing that the company’s growing debt poses a substantial risk. He warns that if Bitcoin’s price fails to recover significantly, the company may face difficulties in repaying its obligations.
“The company now has way more debt per share,” Schiff stated. “When the debt comes due, all that Bitcoin must be sold. Odds are, the sale won’t raise enough cash to repay the debt. That means MSTR goes bankrupt.”
In response to MicroStrategy’s recent announcement of a $21 billion At-The-Market (ATM) offering of Series A Perpetual Strike Preferred Stock, Schiff expressed skepticism about its success. “I don’t think you will be able to pull this off. Soon $MSTR will be trading at a discount to its Bitcoin holdings. That means selling these shares will produce a negative Bitcoin yield,” he added.
Supporters of MicroStrategy’s Bitcoin Strategy Defend the Company
Despite Schiff’s criticism, many of MicroStrategy’s supporters maintain that the company’s Bitcoin strategy has been highly beneficial. Some users on X pointed out that the stock has seen substantial gains over the last five years, with an 85% increase in the past six months alone.
“The strategy is not working? MSTR is still up massively since starting this Bitcoin buying strategy,” one user commented in defense of MicroStrategy.
Another user drew a comparison between MicroStrategy’s decline and Tesla’s recent stock performance, stating, “Tesla is down 50% too, clearly Tesla needs a new strategy. Time to fire Elon (based on idiot logic).” However, Schiff rejected this comparison, arguing that unlike Tesla, MicroStrategy is at greater risk of bankruptcy due to its Bitcoin holdings.
