Peter Schiff Flags Big Problem in Strategys Bitcoin Buying Spree After Latest 3,459 BTC Purchase
Renowned crypto critic Peter Schiff has criticized Strategys Bitcoin accumulation spree and predicted that the company will soon experience losses on its BTC holdings. Schiff made the assertion today after Strategys chairman, Michael Saylor, announced the companys latest Bitcoin acquisition. Strategy Acquires 3,459 BTC In an X post today, Strategy announced that it acquired 3,459 BTC for $285.8 million. This implies that Strategy spent an average of $82,618 per BTC for this acquisition.Notably, the company purchased all 3,459 BTC in one week, from April 7 to 13, 2025. With the latest move, Strategy further solidified its position as the biggest corporate Bitcoin holder, with a total holding of 531,644 BTC. Saylor revealed that the total acquisition cost was $35.82 billion, resulting in an average price of $67,556 per BTC. At the current price of $84,555, Strategys Bitcoin portfolio is valued at $44.95 billion, marking a return of $9.13 billion. Schiff Predicts Imminent Loss for Strategy Meanwhile, Strategys latest Bitcoin purchase attracted mixed reactions from financial experts, with Schiff criticizing the move. The American stockbroker highlighted what he considers a big problem regarding Strategys continued BTC acquisition. Schiff suggested that as Strategy buys more Bitcoin, its average purchase cost rises as BTCs price declines. At the time of the post, Schiff noted that the Strategy still has a "paper gain" of about 25%. However, he warns that if the price of Bitcoin continues to plunge, Strategys overall average BTC cost will surpass the market price. If this happens, the Bitcoin critic stated that Strategys entire BTC position would be held at a loss as the market value would be less than what the company paid for. Schiffs warnings come as Bitcoin recovers from last weeks collapse, which pushed it downward to around $74,000. Despite the recovery, Bitcoin is still 22.5% below its all-time high (ATH) of $109,114, recorded on January 20, 2025. Schiff Calls Saylor the Egg Man Meanwhile, Schiff has been a vocal critic of Bitcoin, referring to the asset as a digital risk. He has slammed companies like Strategy for their Bitcoin buying spree, which he suggests could end in regret. In November, he called Saylor the egg man shortly after the Strategy announced plans to raise $42 billion for more BTC purchases. The egg man is a cautionary tale about how a client aggressively purchased egg futures contracts, raising the price to a lofty target of $1.75 from an opening price of $0.25. Following this hefty surge, the client attempted to sell his egg futures contracts only to learn from his broker that he had been the only one buying the asset, making him the egg man. Interestingly, Saylor and Strategy have often ignored Schiffs criticisms as they continue to acquire more BTC. The Strategy executive chairman remains confident in Bitcoin, predicting that the premier asset will eventually hit a market cap of $500 trillion.
Text source: The Crypto Basic
