Peter Schiff targets co-founder of MicroStrategy for his BTC obsession; warns firm’s shareholders – NewsTo
Peter Schiff targets co-founder of MicroStrategy for his BTC obsession; warns firm’s shareholders

Peter Schiff targets co-founder of MicroStrategy for his BTC obsession; warns firm’s shareholders

Peter Schiff targets co-founder of MicroStrategy for his BTC obsession; warns firm’s shareholders

MicroStrategy, a business intelligence and software firm has been a big crypto proponent for a while. Its co-founder, Michael Saylor, also the chairman, is obsessed with Bitcoin. Saylor has defended and advocated for Bitcoin in numerous instances every day via his tweets.

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However, Peter Schiff, a world-renowned economist, and a crypto critic, recently raised alarms over MicroStrategy’s Bitcoin hoarding. Schiff says that the shareholders of MicroStrategy Incorporated will have to pay for its obsession with Saylor.

Quoting the statistics in his post on Twitter, Schiff highlights that the firm’s shares “have reached its 52-week low”. Also, at its current price of $136.63, the stock is down by “almost 90%” from its 2021 high observed in February at around $1272.94.

Schiff has long criticized digital currencies and has also been vocal in calling out MicroStrategy’s investment plans in multiple instances. The firm had advocated Bitcoin since August 2020, when it first started accumulating it.

Recently, it has been considered one of the biggest buyers and hodlers of Bitcoin, per the statistics on its balance sheet. The firm made large purchases of Bitcoin in 2021 and early 2022, and as of writing, it has collected a total of 132,500 Bitcoins for approximately $4 billion.

Sources reveal that these purchases have been funded via the issuance of second secured notes and the sale of its common stocks, whereas the purchases made in the second and third quarters of 2022 were made via excess cash. However, over the years, MicroStrategy has had to issue Senior Convertible Notes, a debt instrument, to acquire digital assets.

Saylor has always propagated his Bitcoin ideology to likely drive the company’s investment plans. His idea is based on the fact that the technology powering the crypto is fit to drive a massive price valuation in the coming times.

Since the firm started accumulating Bitcoin, it has spread its intention of not selling it. However, on December 22, the firm sold over 700 Bitcoins for about $11.8 million to gain tax benefits. Experts cite this move as bearish for the ongoing crypto winter considering the deep exposure of the firm to Bitcoin.

Saylor’s love for Bitcoin has barely missed the attention of individuals associated with the crypto sector. Todayq News reported in November that ​​Saylor took to Twitter to share the achievement of Bitcoin against other indices like Nasdaq, S&P500, gold, bonds, etc. From August 10, 2020, till the present day, Bitcoin has been the best performer, with a 40% growth compared to S&P 500 and Nasdaq at 18% and 2%, respectively.

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