Economist and cryptocurrency critic Peter Schiff has taken renewed aim at Strategy’s (STR) Bitcoin-focused business model, which has long been the focus of controversy.
Peter Schiff: “No Matter What Happens to Bitcoin, MicroStrategy Will End Up Bankrupt”
Schiff published an article claiming that STR’s business model was “a complete scam” and that the company would inevitably go bankrupt.
Schiff announced that he will speak at the Binance Blockchain Week event in Dubai in early December and participate in a discussion on the topic with Strategy co-founder Michael Saylor.
The renowned economist stated that regardless of what Bitcoin’s long-term fate will be, MicroStrategy’s financial sustainability is at serious risk.
Schiff’s allegations have reignited criticism of Strategy’s aggressive Bitcoin strategy, which has been known to divert all of its cash flow and borrowing resources to Bitcoin acquisitions in recent years.
While this approach is seen as an innovative corporate strategy by crypto advocates, critics like Schiff have criticized it for involving high leverage and excessive risk.
Peter Schiff summarized his controversial statements by saying, “It doesn’t matter if Bitcoin’s ultimate value drops to zero or rises; Strategy has no chance of surviving with this model.” His discussion with Saylor at the Dubai event is expected to reshape discussions of Bitcoin and corporate strategy.
*This is not investment advice.