Peter Schiff, a longtime gold investor and vocal critic of Bitcoin, on Sunday called Strategy’s Bitcoin-only approach a “fraud” and publicly challenged Michael Saylor in a live debate at Binance Blockchain Week in Dubai in December.
Schiff said the company’s recent profits have been primarily linked to Bitcoin’s market price, and warned that the company’s financial structure could collapse if investor sentiment changes.
Sif’s Core Charge
Mr. Schiff said little of Strategy’s reported profits have been realized and that the company’s financial plans are at risk.
He publicly criticized the company, saying, “MSTR’s entire business approach is a fraud. No matter how Bitcoin performs, I expect MSTR to eventually face bankruptcy.”
MSTR’s entire business model is a scam. Saylor and I will both be speaking at Binance Blockchain Week in Dubai in early December. i challenge @Sailor To discuss this proposal with me. No matter what happens to Bitcoin, I believe $mstrer Eventually they will go bankrupt. Let’s go!
— Peter Schiff (@PeterSchiff) November 16, 2025
He cited the company’s third-quarter results (net income of $2.8 billion, diluted EPS of $8.42) as an example of revenue, which he attributed to the rise in the market value of Bitcoin rather than stable business operations.
Schiff said preferred stocks marketed as high yields may never produce the promised returns, which could lead to heavy selling by yield funds.
According to Strategy’s own report, the company held approximately 640,808 BTC as of late October, representing a total cost of approximately $47.44 billion and an implied cost of approximately $74,032 per coin.
MSTR’s business model relies on income-focused funds buying the company’s “high-yield” preferred stock. However, the published yield is never actually paid. When fund managers realize this, they will let go of their preferred funds. $mstrer No more can be issued and a death spiral begins.
— Peter Schiff (@PeterSchiff) November 16, 2025
The company reported a 26% BTC yield year-to-date and said it has realized nearly $13 billion in BTC profits so far in 2025.
These numbers help explain why the company posted strong accounting profits even though its core software business didn’t generate as much revenue.
Discussion session attracts attention
Mr. Schiff’s challenge coincides with Mr. Saylor’s speaking schedule at the Dubai conference, potentially turning what could have been a routine appearance into a public showdown.
Market participants say the discussion will be closely watched by investors, regulators and other corporate issuers considering Bitcoin exposure.
Some analysts say the strategy, while risky, provides a way for investors to gain leveraged exposure to Bitcoin through publicly traded companies.
Others agree with Schiff that accounting and financing choices expose shareholders to sudden changes.
Mr. Saylor and Mr. Strategy did not immediately accept or decline invitations to discuss in public comment.
Featured image from Unsplash, chart from TradingView
