Peter Schiff Slams Bitcoin’s ‘Fraud’ Strategy, Challenges Saylor to a High-Stakes Showdown!

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On a particularly eventful Sunday, the ever-vocal gold enthusiast, Peter Schiff, did what he does best-he stirred the pot. This time, it was the business model of Strategy that earned his wrath, which just so happens to be the architect behind the world’s largest Bitcoin (BTC) treasury company. In Schiff’s eyes, this model isn’t just misguided-it’s outright fraudulent. And who was his target? None other than Michael Saylor, the very man who built this empire of digital gold. Schiff didn’t just sit back, either. Oh no, he challenged Saylor to a grand showdown of wits, to take place at Binance Blockchain Week in Dubai this December. Can’t you just hear the applause?

Now, Schiff isn’t exactly known for his love of Bitcoin. If anything, he’s a notorious critic, the kind of person who would rather buy gold than anything with a ‘bit’ in the name. The crypto community knows him well, and they’ve come to expect his passionate rants. But this time, he wasn’t just grumbling about the usual crypto follies. No, he brought the big guns. In an impassioned post on X, he declared:

“MSTR’s business model relies on income-oriented funds buying its ‘high-yield’ preferred shares. But those published yields will never actually be paid. Once fund managers realize this, they’ll dump the preferreds.”

Peter Schiff's Challenge to Michael Saylor

Ah, the classic “I told you so” moment. According to Schiff, once the funds wise up and realize they’ve been sold a bill of goods, they’ll sell off their preferred shares faster than you can say “blockchain.” And then, as if by magic (but not the good kind), Strategy will hit a “death spiral,” unable to issue more debt. It’s a scenario that no one in the financial world ever wants to experience. But wait-there’s more!

Schiff’s challenge comes at a rather timely moment. Bitcoin, ever the volatile diva, has dipped below the $99,000 mark-sadly, not much of a surprise considering the wild ride of the past few months. And don’t forget the overall downturn in the crypto treasury sector. Meanwhile, gold, the ancient, reliable standby, has managed to reclaim its price levels above $4,000 per ounce. It’s like watching an old friend shrug off a bad hangover and get back to business.

Bitcoin and Strategy suffer while gold remains above key $4,000 support

Let’s talk numbers. Bitcoin’s price has nosedived more than 20% from its peak above $125,000 in October, right before that infamous flash crash on October 10. A lot of digital dreams were crushed in the wake of that disaster, wiping billions off the market. Ouch.

Bitcoin’s Price Decline

Strategy’s mNAV (that’s ‘multiple on net asset value’ for you finance geeks out there) is currently hovering at a not-so-impressive 1.21, which is low even by the humble standards of treasury companies. Investors typically consider anything below 2 a cause for concern, and let’s face it, we’re not exactly talking about a golden goose here. Strategy’s stock price has plummeted by more than 50% since July, now trading at around $199. That’s gotta sting a little.

In contrast, gold-ever the reliable asset-is doing its best “I told you so” impression. Despite a slight dip below the $4,000 per ounce mark, it’s clawed its way back to a comfortable $4,085. The yellow metal’s price even hit an all-time high of $4,380 per ounce in October before retracting a little. But let’s not forget, it swelled to a market cap over $30 trillion before the inevitable pullback. Now that’s some serious bling.

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2025-11-17 00:31