Peter Schiff Takes a Swipe at Michael Saylor Over Unexpected Use of Bitcoin — What Did He Say?

Updated

May 16, 2025

Gambar Peter Schiff Takes a Swipe at Michael Saylor Over Unexpected Use of Bitcoin — What Did He Say?

Jakarta, Pintu News – Peter Schiff, known as a Bitcoin and crypto critic, recently acknowledged the “first real use case” for Bitcoin (BTC).

Through a sarcastic post on X, Schiff commented on investment manager Jim Chanos’ purchase of Bitcoin (BTC), which he said showed Bitcoin’s (BTC) utility in the real world.

Schiff, who has been insisting that Bitcoin (BTC) has no practical utility, seems to find irony in this latest investment strategy.

Check out the full news here!

Michael Saylor’s Bitcoin Buying Strategy

Michael Saylor, Executive Chairman of Strategy, continues to add to his company’s Bitcoin (BTC) holdings, which now stand at nearly 570,000 BTC. This has led some market observers to consider MicroStrategy (MSTR) shares as a Bitcoin (BTC) substitute with added corporate risk.

Schiff mocked this strategy, stating that Saylor has “inadvertently created a real use case for Bitcoin (BTC),” where investors use Bitcoin (BTC) to shield themselves from the risks associated with Saylor’s own company.

Fund manager Chanos, known for shorting stocks of companies it deems overvalued or structurally weak, apparently sees MSTR as overhyped due to their Bitcoin (BTC) strategy. By owning Bitcoin (BTC) while shorting MSTR, Chanos aims to limit its losses if the price of Bitcoin (BTC) spikes.

Also read: NODE ETF Officially Launched by VanEck, Offering Broad Access to Crypto Investments!

Chanos Bet Against MicroStrategy’s Valuation

In a post on X, Chanos explained that investors are paying too much for every dollar of Bitcoin (BTC) exposure through Strategy. According to his statement, MSTR shares are trading at a premium that far exceeds the true value of their Bitcoin (BTC) holdings.

“The Infinite Money Glitch” (They actually believe that buying $1 for $3 is a guaranteed money-making strategy) https://t.co/rWjnKpCG5o
— James Chanos (@RealJimChanos) May 14, 2025

He argues, “Investors pay $3 of stock price to get $1 of Bitcoin (BTC) exposure.” Chanos’ hedging strategy implies that while MSTR’s stock may fall due to being overvalued, the Bitcoin (BTC) he holds could cushion the loss.

MicroStrategy recently added 13,390 BTC for about $1.34 billion, but faced criticism for borrowing funds to buy Bitcoin (BTC). Schiff echoed these concerns, saying that a large BTC price drop could turn paper profits into real financial stress for Strategy.

Also read: Pi Network Launches $100 Million Fund, But Price Remains Depressed Below $1!

MicroStrategy (MSTR) Stock Performance

I've often said there's no actual use case for Bitcoin. It turns out I was wrong. @RealJimChanos found a valid reason to own Bitcoin. He bought it to hedge his short position in $MSTR. So @Saylor has ironically created a use case for Bitcoin, just not the use case he had in mind.
— Peter Schiff (@PeterSchiff) May 14, 2025

MicroStrategy (MSTR) shares have seen a rise of almost 40% in 2025, reflecting the upward trend in Bitcoin (BTC) prices. However, Peter Schiff argues that this growth is more tied to Bitcoin (BTC) price movements than the company’s core business performance.

This raises concerns about sustainability if Bitcoin (BTC) enters a correction phase. However, recent purchases by companies such as Metaplanet and Tether-backed company Twenty One Shares have increased optimism for Bitcoin (BTC) price breaking through resistance to new record highs.

The Bitcoin (BTC) market is currently in a price consolidation range between $100,678 and $105,700. Analysts predict a potential breakthrough if BTC prices hold above key levels. Glassnode data shows Bitcoin’s (BTC) real capitalization has increased by $30 billion since April 20, indicating an influx of new capital into the market, which is a prelude to a bullish breakthrough.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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