In a recent discussion surrounding Bitcoin, renowned economist Peter Schiff scrutinized the cryptocurrency’s significant price drop over the past year, particularly in light of Strategy Inc. substantially increasing its Bitcoin holdings during that same period. Schiff highlighted this irony in a post on X, referencing the 2025 Bitcoin Conference, where he noted that Michael Saylor’s company had enhanced its Bitcoin reserves from 2.76% of the total supply to 3.9%. This increase corresponds closely with the upcoming key 2026 conference.
The 2025 Conference took place in Las Vegas from May 27 to May 29, during which Strategy owned 580,250 BTC. Following recent acquisitions, the company’s holdings have surged to 818,334 BTC, reflecting nearly a 40% increase. Despite this growth in market share, Bitcoin’s value has experienced a troubling decline of approximately 30% since the conference, trading around $109,000 during that event. Schiff expressed skepticism about Bitcoin’s future, questioning if a potential increase in Saylor’s Bitcoin ownership to 5% by the next year’s conference would lead to a halt in Bitcoin’s downturn.
In response to Schiff’s post, prominent Bitcoin advocates pushed back against his commentary. Natalie Brunell, an influencer and podcaster, remarked that Schiff’s understanding of Bitcoin had not improved from the previous year, suggesting a continued lack of insight on his part. Further bolstering the defense of Bitcoin, another trader known as Castillo Trading pointed out that having a 4-5% stake in Bitcoin is not particularly alarming, comparing it to significant ownership stakes by executives and firms in major traditional stocks such as Nvidia, Meta, and Amazon.
Looking closely at Strategy’s financial maneuvers, the company seems to be investing heavily in Bitcoin this month, with total purchases exceeding $6.4 billion. Currently valued at around $77,000 per Bitcoin, Strategy’s position is still profitable, but it appears to be at risk if the price dips below $75,000. With a market capitalization of $58 billion and Bitcoin holdings valued at approximately $63 billion, Strategy’s stock is trading at a discount relative to its net asset value.
Saylor has remained an ardent defender of Strategy’s investment strategy, claiming that as long as Bitcoin maintains a modest annual growth rate of 1.25%, the company can continue to support dividend payments and enhance shareholder value indefinitely.
