Quick Breakdown
- •Peter Schiff has accused Strategy’s business model of being a “fraud,” directly challenging Michael Saylor to a debate at Binance Blockchain Week in Dubai.
- •This confrontation comes as Bitcoin slides below $99,000 and gold retains strength above $4,000.
- •Schiff warns of a looming “death spiral” for Strategy, igniting further debate on digital asset treasuries.
Schiff Slams Strategy, Calls for Debate
Prominent gold advocate Peter Schiff has condemned Strategy’s business model, known for amassing the world’s most extensive Bitcoin treasury, as “fraud” and publicly challenged company founder Michael Saylor to a live debate at December’s Binance Blockchain Week in Dubai. Schiff’s latest warning centres on what he alleges is an unsustainable structure:
MSTR’s business model relies on income-oriented funds buying its ‘high-yield’ preferred shares. But those published yields will never actually be paid. Once fund managers realize this, they’ll dump the preferreds.
MSTR’s business model relies on income-oriented funds buying its “high-yield” preferred shares. But those published yields will never actually be paid. Once fund managers realize this they’ll dump the preferreds & $MSTR won’t be able to issue any more, setting off a death spiral.
— Peter Schiff (@PeterSchiff) November 16, 2025
According to Schiff, this could trigger a rapid selloff of Strategy’s preferred shares, disrupt the company’s ability to issue debt, and potentially spark a “death spiral.” The remarks accompany a broader market reckoning for digital asset treasuries, with Bitcoin falling over 20% since its October highs above $125,000, coinciding with gold’s stable surge past $4,000 per ounce.
Bitcoin and Gold Diverge as Debate Looms
Bitcoin’s price has tumbled, dropping below $99,000 while Strategy’s stock trades around $199—more than 50% down since July. The company’s multiple on net asset value (mNAV) dipped below 1 in November, a metric well below what investors regard as healthy for a crypto treasury firm. Meanwhile, gold has maintained its footing, hitting all-time highs near $4,380 per ounce before settling around $4,085.
Schiff’s criticisms have intensified in the wake of these price movements, as he continues championing physical gold over digital assets. Michael Saylor and Strategy have yet to respond directly to the debate challenge. Still, the broader market context suggests significant scrutiny and volatility ahead for firms with outsized exposure to Bitcoin.
Meanwhile, Strategy has filed for a Euro-Denominated Perpetual Stock IPO to Boost Bitcoin Holdings, detailing a crypto treasury firm’s ambitious financial manoeuvre. This strategy involved issuing perpetual stock, ticker STRE, which is exclusively available to qualified EU and UK institutional investors and offers a 10% cumulative annual dividend.
Critically, the primary purpose of the funds raised from this stock offering is to fuel further Bitcoin acquisitions and support general business growth, reinforcing the company’s core focus on increasing its substantial BTC reserves.