Schiff's Scathing Assessment of MicroStrategy's Business Model
Economist and cryptocurrency critic Peter Schiff has renewed his criticism of MicroStrategy's (STR) Bitcoin-focused business model, labeling it a "complete scam" and predicting the company's inevitable bankruptcy.
Schiff's allegations highlight the ongoing controversy surrounding MicroStrategy's aggressive strategy of acquiring Bitcoin using its cash flow and borrowed funds.
Upcoming Debate with Michael Saylor
Schiff announced his participation in the Binance Blockchain Week event in Dubai, scheduled for early December. There, he is slated to engage in a discussion on the topic with MicroStrategy co-founder Michael Saylor.
The renowned economist firmly stated that regardless of Bitcoin's long-term trajectory, MicroStrategy's financial stability is under serious threat.
Criticism of High Leverage and Risk
Schiff's recent remarks have intensified existing criticisms of MicroStrategy's Bitcoin acquisition strategy. This approach has consistently involved allocating all available cash flow and borrowing capacity towards purchasing Bitcoin.
While proponents of this strategy view it as an innovative corporate move, critics like Schiff argue that it involves excessive leverage and substantial risk.
Schiff's Stark Prediction
Peter Schiff summarized his controversial stance by stating, "It doesn't matter if Bitcoin's ultimate value drops to zero or rises; MicroStrategy has no chance of surviving with this model." The anticipated discussion with Michael Saylor at the Dubai event is expected to significantly influence the discourse surrounding Bitcoin and corporate financial strategies.