- MicroStrategy continues Bitcoin buying spree, acquiring 444,262 BTC at an average cost of $62,257 each, totaling $28 billion.
- Peter Schiff criticizes the strategy, noting the latest purchase exceeded the market price, signaling potential investment misalignment.
MicroStrategy, a company renowned for its assertive Bitcoin acquisition strategy, recently expanded its holdings with a notable purchase exceeding half a billion dollars. This transaction brings their total Bitcoin ownership to 444,262 BTC, acquired at an average price of $62,257 per unit, cumulatively costing around $28 billion.
This recent acquisition marks a continuing trend, being the seventh consecutive Monday purchase.
The strategy, however, has drawn skepticism from financial expert Peter Schiff, who raised concerns over the sustainability of MicroStrategy’s purchasing pattern. Schiff highlighted that this was the smallest transaction in the series, and notably, the first instance where the acquisition cost exceeded the market price at the time of announcement.
It seems like you are running out of firepower to keep propping up Bitcoin. Plus, not only is this your smallest buy, but the first time your average purchase price has been above the market price on the Monday you disclosed the buy.
— Peter Schiff (@PeterSchiff) December 23, 2024
Critics are increasingly scrutinizing MicroStrategy’s method of financing these purchases, which involves leveraging substantial debt through the issuance of convertible bonds, corporate bonds, securing lines of credit, and stock sales.
There is a growing concern that a significant downturn in Bitcoin prices could severely impact MicroStrategy’s financial stability and potentially lead to a forced sell-off of Bitcoin, exacerbating market fluctuations.
Peter Schiff Criticizes Bitcoin Investment and Comments on U.S. Foreign Policy
Peter Schiff, known for his skepticism towards Bitcoin, has reiterated his doubts about the cryptocurrency in several recent tweets. On December 23, 2024, Schiff compared the idea of the United States buying Bitcoin with the possibilities of purchasing Greenland or taking back control of the Panama Canal, suggesting that buying Bitcoin is an even more outlandish idea.
Over the weekend #Trump expressed interest in buying Greenland. He also implied the U.S. might take back the Panama Canal, though that may be a negotiation tactic to buy it back at a good price. If those ideas sound crazy, they're not nearly as crazy as the U.S. buying #Bitcoin.
— Peter Schiff (@PeterSchiff) December 23, 2024
He argues that, unlike acquiring territories or infrastructure with tangible value like the Panama Canal, Bitcoin does not offer real investment returns and its value is questionable.
In another tweet from December 22, Schiff criticized MicroStrategy’s recent decision to buy more Bitcoin near its all-time highs, implying that this action could compromise market integrity and lead to widespread disruption. Schiff has been vocal about his belief that Bitcoin is not a solid long-term investment, and MicroStrategy’s move only reinforces his stance.
Someone actually created a #USAcoin. My post was sarcastic—don't buy it. However, my point was that if the U.S. government created such a token and committed to building a strategic USAcoin reserve, it would make more sense than stockpiling #Bitcoin. That part wasn't a joke.
— Peter Schiff (@PeterSchiff) December 22, 2024
On December 21, Schiff also expressed disapproval of President-elect Donald Trump’s foreign policy, particularly regarding his threat to attempt to regain control of the Panama Canal or push for lower tolls.
Schiff suggested that such actions would be a step backward and indicative of how U.S. foreign policy might change under Trump’s administration.
Now that #USAcoin is gaining a following, I've decided to upgrade the design. @realDonaldTrump needs to establish this coin by executive order and build a strategic reserve. #Bitcoin is for losers. USAcoin is for winners. Buy it, or have fun staying poor. pic.twitter.com/T9u6HToyPX
— Peter Schiff (@PeterSchiff) December 21, 2024
In earlier posts from December 21 and 20, Schiff critiqued Bitcoin’s recent price surge, stating that despite the increase, it remains a speculative bubble. He also commented on Trump’s influence on the economy, suggesting that Trump’s policies could lead to greater economic instability due to his focus on deregulating digital assets.
Despite these concerns, Bitcoin’s performance has been impressive, with an increase of 121.8% since the beginning of the year, reflecting strong market confidence. However, the sustainability of MicroStrategy’s aggressive acquisition strategy remains a topic of debate among investors and market analysts.
