Safe bet or risky bet? The debate between Peter Schiff and Saylor on MSTR's Bitcoin strategy

Peter Schiff’s Scolding: Why Isn’t MSTR Making as Much as It Should?

Critic economist Peter Schiff reignited the debate on social media, this time directly questioning MicroStrategy’s multimillion-dollar bet on bitcoin. His argument is straightforward: a $5 billion investment with unrealized gains below 15% is simply mediocre.

While bitcoin is trading around $91.51K and has shown a 24.9% performance so far this year, Schiff argues that MicroStrategy should have done much better. His favorite comparison: if Saylor had invested that money in gold, the gains would be “at least double, or even more”. An argument that gained strength precisely when the crypto market was plunging nearly 4% and liquidations reached $600 million in a single day.

MicroStrategy Under Pressure: Is the Strategy Wobbling?

The numbers are revealing but not catastrophic. The company owns approximately 671,268 bitcoins with a total value close to $5,030 million. However, MSTR’s stock has fallen more than 60% in the past year, amplifying volatility and casting doubt on the robustness of this aggressive accumulation strategy.

Michael Saylor remains undeterred. Recently, he confirmed that he bought an additional 10,645 bitcoins for about $980 million, demonstrating his continued faith in digital scarcity in the long term. For Saylor, bitcoin is not just money; it is a digital asset with intrinsic value that transcends short-term cycles.

Gold Shines While Bitcoin Wobbles

This is where Schiff’s argument makes real sense. Gold has risen approximately 131% over the past five years, while bitcoin has skyrocketed around 344%, but with extreme volatility. The gold price is already around $4,350, less than 1% below its all-time high.

Silver adds its own shine: after breaking key resistances, it has reached nearly $64, with projections of over 100% increases by 2025. The migration of capital from cryptocurrencies to precious metals is evident in the silver-to-bitcoin ratio, which has notably plummeted.

Why Does Peter Schiff Hate This Strategy?

The critic economist has a valid point: in times of economic uncertainty, corporate balances need security, not wild volatility. Gold benefits from falling yields and dollar weakness. Bitcoin, on the other hand, behaves like a pure risk asset, amplifying both gains and losses.

Schiff questions the timing of entry. MicroStrategy paid an average of $75,000 per bitcoin, and although the current price is higher, unrealized gains seem disproportionately low considering the size of the investment. During contraction periods, this becomes especially uncomfortable.

Who Will Win This Battle?

The real question is not whether MSTR failed, but whether the crypto market can maintain its momentum in 2025 while gold and silver take center stage. Digital assets will continue to be unpredictable. Saylor bets on programmed scarcity and long-term adoption. Schiff bets on traditional financial reasoning.

At its core, it is a philosophical clash: do you trust the short-term volatility of an emerging technology or prefer the proven stability of precious metals? For MicroStrategy, the answer will determine whether this strategy is remembered as a vision of the future or as the most expensive gamble of the crypto era.