Famous gold advocate and Bitcoin critic Peter Schiff claimed that following the sharp declines in the crypto market, companies operating with the “Bitcoin treasury” model are being dragged into a serious crisis.
Schiff said that the business model of companies that put Bitcoin at the center of their balance sheets, especially MicroStrategy (now Strategy), is unsustainable.
According to Schiff, these companies will be unable to survive market pressures because they lack a real business. The analyst noted that BTC price volatility weakens institutions whose balance sheets are entirely based on BTC. He continued, “If you establish a company and base your sole business model on buying Bitcoin, you don't actually have a business. Anyone can buy BTC; you don't need a company to do that.”
Schiff specifically targeted Strategy, saying the company has long maintained an “absurd model.” He noted that the firm's share premium has largely eroded, and the shares now offer virtually no additional value compared to a Bitcoin portfolio. The analyst noted that Strategy stock has lost approximately 65% of its value since last year, suggesting that the decline will continue.
According to Schiff, the most critical risk is Strategy losing access to the capital markets. The analyst noted that the company has financed its Bitcoin purchases by selling new stock and preferred shares, but that this avenue would be completely closed if the share price fell below the value of BTC. In such a scenario, he argued, the company would be unable to continue its new BTC purchases and would “enter a period of collapse.”
These announcements come as Bitcoin's sharp decline in recent weeks and ETF outflows have strained institutional investors. At its latest price, BTC is trading at $84,171, down nearly 12% on the week.
*This is not investment advice.
