- Peter Schiff expresses concerns about MicroStrategy’s sustainability, noting stock remains 40% below its 52-week high.
- MicroStrategy’s shares currently trade at about $121, reflecting a more than 90% increase since the start of the year.
Michael Saylor, the CEO of MicroStrategy, recently discussed his company’s investment in Bitcoin on CNBC, outlining the significant gains MicroStrategy has achieved by holding a large amount of the cryptocurrency.
The company’s investment strategy has seen its stock increase by 825% since it started accumulating Bitcoin, a rise that exceeds even that of tech giant Nvidia. Despite these gains, Peter Schiff, always a critic of BTC investments, offered a cautious perspective.
Peter Schiff noted that MicroStrategy’s shares are trading 40% under their highest value in the past year and 6% below their peak in 2021, raising doubts about the durability of their recent financial performance. He warned that the company’s stock could potentially experience additional drops.
What a bunch of nonsense. CNBC is too beholden to their crypto advertisers to really push back against your false statements. MSTR is down 40% from its 52-week high and is 6% below its 2021 high. The actually returns are not nearly as rosy as you describe and will soon get worse.
— Peter Schiff (@PeterSchiff) September 9, 2024
At present, MicroStrategy’s shares are valued at around $121, up more than 90% since the year began. Bitcoin itself has also seen a substantial rise, increasing 30% over the past nine months.
It’s noteworthy that Saylor, despite his public support for MicroStrategy’s strategy, sold some of his company shares earlier in the year. This sale occurred in late April when shares reached $173, followed by a significant drop of more than 37% in their value that month.
This situation underscores the volatile nature of investing in cryptocurrencies and their impact on related stocks.
While some industry observers like Saylor view cryptocurrency as a potent vehicle for corporate growth and shareholder value, skeptics like Schiff warn of the risks and potential instability associated with such strategies.
