Economist and noted Bitcoin skeptic Peter Schiff took to X (formerly Twitter) to argue that Strategy Inc. — led by Michael Saylor and known for its aggressive Bitcoin accumulation — would rank among the worst-performing stocks in the S&P 500 if it were included, and that the firm’s strategy has destroyed shareholder value despite Saylor’s claims about Bitcoin’s benefits.
Schiff’s Commentary on Strategy’s Performance
In a tweet shared this week, Schiff pointed to Strategy’s 47.5 % decline in 2025 and noted that, although the company is not part of the S&P 500 index, the magnitude of its stock drop would have placed it as the sixth worst-performing stock in the benchmark this year if it had been included.
Schiff argued that Michael Saylor’s belief that “the best thing a company can do is buy Bitcoin” — a viewpoint Saylor has publicly expressed in defense of the company’s treasury strategy — has not translated into shareholder gains. Instead, Schiff suggested, the approach has impaired returns and diluted equity value for investors.
He also pointed out that Strategy’s “paper profit” on Bitcoin holdings is limited, and its reliance on raising capital via stock and convertible debt to fund acquisitions has not delivered the outsized returns some investors expected
Context: Strategy’s Stock and Bitcoin Bet
Strategy Inc. (formerly MicroStrategy) has become one of the most visible institutional Bitcoin holders, consistently purchasing BTC through at-the-market (ATM) equity programs and convertible instruments. As of late December, the firm has accumulated over 672,000 BTC — making it the largest corporate holder of Bitcoin.
While Bitcoin’s long-term price appreciation remains a central part of Strategy’s narrative, the company’s stock has underperformed during market downturns, reacting more sensitively than the underlying Bitcoin price due to dilution from stock issuance and perceived leverage risk.
Saylor’s Defense and the Strategy Narrative
Michael Saylor and other Strategy supporters maintain that the company’s Bitcoin-centric strategy is a long-haul investment, designed to capture the full upside of Bitcoin’s future value. In previous comments, Saylor has described Strategy as “engineered” to withstand major market drawdowns and has emphasized Bitcoin’s declining volatility as evidence the asset is maturing.
Saylor has also defended the company’s financial model, framing Bitcoin as a core treasury asset and arguing that short-term stock volatility does not reflect the true value of the firm’s accumulated Bitcoin.
Industry Reaction
Schiff’s criticisms reflect a broader skepticism held by some traditional finance observers who question the sustainability of crypto-treasury business models. Critics argue that heavy reliance on a single volatile asset — especially when funded by equity issuance — can distort shareholder incentives and elevate risk during market downturns.
Proponents of Strategy counter that its model provides a regulated avenue for institutions and retail investors to gain Bitcoin exposure, and that short-term stock moves should be centered against Bitcoin’s own cycle rather than traditional indices.
What This Means for Investors
For investors in Strategy (NASDAQ: MSTR), the debate underscores an ongoing tension: whether Bitcoin-levered business models offer superior returns over time, or whether they amplify downside risk compared with more conventional business strategies. The firm’s stock performance in 2025 — marked by a sharp drawdown — provides a real-world test case for these competing perspectives.
Whether Schiff’s critique resonates with a broader investor base may depend on Bitcoin’s price trajectory in 2026 and whether Strategy’s accumulation and financial structuring can translate into sustained equity appreciation.
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