Peter Schiff: 'Strategy’s Entire Business Model Is a Fraud,' Challenges Michael Saylor to a Debate

Key Takeaways

• Peter Schiff has called Strategy a fraud.

• Schiff challenged Strategy Chairman Michael Saylor to a statement connected the issue.

• Critics person called Strategy a Ponzi strategy due to the fact that it uses wealth from caller investors to work debts.

As Strategy (MSTR) comes nether unit amid the latest crypto marketplace downturn, Peter Schiff has called retired laminitis Michael Saylor.

With some men scheduled to look astatine Binance Blockchain Week successful December, Schiff challenged Saylor to statement the complaint that Strategy’s Bitcoin treasury exemplary is simply a scam.

In an X station connected Sunday, Nov. 16, Schiff alleged that Strategy’s “entire concern exemplary is simply a fraud.”

“Regardless of what happens to Bitcoin, I judge MSTR volition yet spell bankrupt,” helium stated.

While Schiff is simply a well-known Bitcoin skeptic, debates implicit the viability of Saylor’s integer plus treasury exemplary are widespread.

Critics constituent to the risks of a publically traded institution utilizing indebtedness and equity issuance to accumulate BTC.

Strategy’s maturation exemplary relies connected the institution perpetually raising wealth to bargain much Bitcoin.

More controversially, it besides uses the caller superior to repay indebtedness from erstwhile raises.

When BTC goes up, truthful does MSTR. Because its banal terms keeps rising, investors person been blessed to support backing Saylor’s company.

Schiff’s charges of fraud apt subordinate to Strategy’s reliance connected caller fundraising to wage existing investors.

On the surface, this does so look similar a Ponzi scheme. However, Strategy is unfastened astir the risks involved.

Moreover, dissimilar newer entrants to the integer plus treasury space, having been accumulating Bitcoin for years, the steadfast benefits from a overmuch little mean acquisition price.

Speaking connected an net telephone successful August, Saylor claimed Strategy could past an 80% BTC drawdown without missing a azygous dividend payment.

Despite these assurances, the marketplace has priced successful further hazard pursuing caller bearishness.

On Nov. 13, Strategy’s marketplace capitalization concisely fell beneath the worth of its Bitcoin holdings, prompting concerns that the steadfast whitethorn beryllium forced to merchantability immoderate of its assets.

The station Peter Schiff: 'Strategy’s Entire Business Model Is a Fraud,' Challenges Michael Saylor to a Debate appeared archetypal connected ccn.com.