Peter Schiff Warns of MicroStrategy Bankruptcy Amid Bitcoin Slump
Peter Schiff has predicted that MicroStrategy will face bankruptcy amid the recent Bitcoin crash, labeling the firm a “scam” regardless of BTC price movements. MicroStrategy’s market NAV (mNAV) has fallen below 1, meaning its stock trades at a discount to its Bitcoin holdings. CEO Michael Saylor rebuffed rumors of selling BTC and disclosed a record $835 million purchase at an average price of $102,171—well above current levels—leaving 43% of its Bitcoin stash at a loss. With an overall average purchase price of $74,433 and warnings from trader Peter Brandt that BTC could drop below $50,000, MicroStrategy risks forced Bitcoin sales to service its debt interest. Experts caution that prolonged BTC weakness may push the company toward insolvency, while Bitcoin trades near $91,800, showing slight recovery.
Bearish
The article’s negative outlook from Peter Schiff and looming pressure on MicroStrategy undermines confidence, signaling bearish sentiment. MicroStrategy’s mNAV below parity and potential forced BTC sales to cover debt echo past leveraged crypto positions that led to sharp sell-offs. In the short term, traders may react with increased selling of MSTR stock and BTC on risk aversion. Long-term, sustained Bitcoin weakness could force more asset sales, further depressing prices and triggering broader market downturns.