Peter Schiff Questions Timing of Michael Saylor’s $75M Bitcoin Purchase

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TLDR

  • Michael Saylor’s company, Strategy, bought an additional 855 Bitcoin for $75.3 million at an average price of $87,974.
  • Bitcoin’s price fell below $75,000 shortly after Saylor’s purchase, raising concerns about the timing of the buy.
  • Peter Schiff criticized Saylor, pointing out that he bought Bitcoin for $10,000 above its current market price.
  • Saylor’s Bitcoin holdings now total 713,502 BTC, worth around $56 billion, despite the recent market fluctuations.
  • Schiff questioned why Saylor didn’t buy Bitcoin during the weekend dip, highlighting the thin profit margin on his Bitcoin stack.

Michael Saylor’s company, recently added an additional 855 Bitcoins worth $75.3 million. This purchase drew attention, especially as Bitcoin’s price dropped below $75,000 not long after. Peter Schiff, a well-known critic of Bitcoin, has used social media to challenge Saylor’s strategy, noting he bought Bitcoin at a price significantly higher than its market value.

Bitcoin Purchase Raises Concerns

Saylor’s firm, Strategy, acquired the 855 Bitcoins at an average price of $87,974. This price was well above the current market price, which had been hovering around $78,000 recently. Critics noted Bitcoin fell below $75,000 immediately following Saylor’s purchase, leading many to question the timing.

didn’t delay in criticizing Saylor’s decision, highlighting the “math” behind the purchase.

“You bought Bitcoin for $10,000 more than the current spot price,” Schiff said in his public statements.

He questioned why Saylor didn’t wait for a better price, especially as Bitcoin dropped over the weekend.

Despite the criticism, Saylor now holds a total of 713,502 Bitcoins, valued at approximately $56 billion, which exceeds the company’s current market capitalization of $52 billion. Even with Bitcoin’s recent price decline, Saylor’s position remains strong, with paper profits of $1.5 billion.

Saylor’s Bitcoin acquisitions have been part of a broader strategy, with the company investing billions in Bitcoin over the years. The purchase of 855 Bitcoins is one of several investments aimed at strengthening the company’s balance sheet. Like in the past, Saylor may continue buying Bitcoin even when market conditions appear unfavorable.

Schiff Doubts Strategy’s Timing and Math

Peter Schiff has repeatedly criticized and its investors, labeling it a speculative asset with minimal intrinsic value. In response to Saylor’s most recent purchase, Schiff questioned the strategy’s calculations, emphasizing that the company’s Bitcoin holdings have a narrow profit margin. With a 2.8% profit margin, any miscalculation could potentially impact the company’s bottom line.

Schiff noted the market is unpredictable, and Saylor could have avoided the current purchase price by waiting for a price drop. “It’s perplexing why you didn’t buy the dip when it was right there,” Schiff stated. To him, this action may indicate either a miscalculation or a lack of foresight in Saylor’s strategy.