- Schiff says Bitcoin is down 60% priced in gold since its November 2021 peak.
- MSTR fell 84% from its peak while STRC dropped 25%, pushing its yield to 15.3%.
- Schiff said Strategy should sell Bitcoin and buy back MSTR shares to narrow the valuation gap.
Peter Schiff has sharpened his criticism of Bitcoin and Strategy this week, pointing to a series of data points he says prove gold has decisively outperformed Bitcoin over the past five years while Strategy’s stock continues to unravel.
Schiff said that since Bitcoin’s November 2021 peak, the cryptocurrency has fallen 60% when measured in gold terms. He acknowledged that gold itself is down 28% from its own record high, but argued the comparison still decisively favours the precious metal. “Despite all Wall Street’s hype that Bitcoin is better than gold, gold outshone it,” he wrote.
Strategy Stock Below $85.50, STRC Yield Hits 15.3%
Schiff also flagged accelerating declines across Strategy’s securities. MSTR shares fell another 8% in a single morning session and are now down 84% from their peak. The preferred stock STRC dropped a further 7%, bringing its total decline to 25% and pushing its effective yield to 15.3% as the price continues to fall well below its intended $100 par value. Bitcoin slipped to $58,000 during the same period, sitting 54% below its all-time high.
The Buyback Debate
One community member suggested that Strategy could stabilize STRC by simply repurchasing the shares it originally sold at $100, arguing the move would spook short sellers and signal confidence. Schiff dismissed the idea. To buy back STRC, Strategy would need to sell Bitcoin at a loss, something he does not believe Saylor will do.
Schiff raised a separate argument about MSTR’s share price, saying it is approaching a potential 40% discount to the value of the Bitcoin it holds per share. His suggestion was that the logical move to close that gap would be to sell some Bitcoin and use the proceeds to buy back MSTR shares.
“Value is subjective in this case,” he wrote. “Selling Bitcoin to buy stock would result in shareholders owning more Bitcoin. But if Bitcoin has no value, then maximising Bitcoin per share has no value either.”
For the unversed, Bitcoin dropped to $58,000 before reversing back slightly, sitting approximately 54% below its all-time high, and a record 10.8 million coins are now held at a loss. The average price all Bitcoin holders paid, known as the realized price, currently sits around $53,000.
Related: Stress Test Sees Strategy’s Bitcoin Per Share Falling 94%
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