Economist Peter Schiff Criticizes Strategy’s Bitcoin Bet

Economist Peter Schiff has once again spoken out against companies that build their business plans around Bitcoin. This time, he is criticizing Strategy, a Bitcoin-focused company led by chairman Michael Saylor.

Schiff argued that Strategy’s heavy exposure to Bitcoin has damaged shareholder value, exposing investors to unnecessary risk, especially during market downturns.

Peter Schiff Highlights Strategy’s 2025 Share Price Decline

In a post on X, Schiff said Strategy’s shares fell about 47.5% in 2025, backing his criticism of the company’s approach. According to Schiff, if Strategy were included in the S&P 500, that decline would place it among the worst-performing stocks in the index. 

Although the company is not actually part of the benchmark, Schiff said the comparison helps illustrate what he sees as the cost of linking a company’s fate so closely to Bitcoin.

Schiff argued that this result directly challenges Michael Saylor’s long-standing view that buying Bitcoin is the best decision a company can make. 

Peter Schiff Highlights Bitcoin Volatility Risk

Schiff framed 2025 as a clear example of how Bitcoin-linked strategies can fail to protect investors during downturns. He said that when Bitcoin prices fall, companies that rely heavily on leverage face amplified losses. 

Schiff argued that Strategy’s stock drop proves Bitcoin is not as safe as supporters claim, especially during market downturns. He maintained that Bitcoin adds risk rather than protection for companies and investors.

Schiff’s remarks quickly sparked debate across both crypto and traditional equity markets. Several analysts argued that comparing Strategy to typical S&P 500 companies misses an important point. 

They said the Nasdaq-listed firm no longer behaves like a conventional software firm. Instead, it operates more like a leveraged proxy for Bitcoin. 

From this view, Strategy’s share price mostly follows Bitcoin’s price, not things like revenue growth or profits. Supporters say using normal stock measures to judge the company can be misleading.

Strategy’s Long-Term Bitcoin Bet Sparks Debate

Community members said judging Strategy by just one year misses the bigger picture. Supporters argued that short time frames make losses look worse while ignoring possible gains in future market cycles.

The discussion also brought back worries about debt and share dilution. Some investors said Strategy’s use of loans and new share sales to buy Bitcoin has made the stock more volatile. When prices go up, this can boost gains, but when prices fall, it can increase losses and hurt existing shareholders.

Still, Strategy’s supporters say the plan is meant for the long term. They believe the company is using Bitcoin as protection against the weakening value of traditional money, not as a quick trade. From this view, judging the Bitcoin accumulation strategy only by what happened in 2025 does not show its real goal.