Peter Schiff says MicroStrategy’s Bitcoin investment was a bid to avoid liquidation

MicroStrategy bought its first cryptocurrency to avoid liquidation, said Peter Schiff, president of Euro Pacific Capital.

For the first time I heard @saylor admit that adding #Bitcoin to the @MicroStrategy balance sheet was basically a Hail Mary to avoid liquidating the company. If the only thing $MSTR has going for it is a leveraged speculative position in Bitcoin, than it has nothing going for it.

— Peter Schiff (@PeterSchiff) December 20, 2022

“For the first time I heard that [former MicroStrategy head Michael] Saylor admitted that adding Bitcoin to the balance sheet was, essentially, an attempt to avoid liquidating the company. If the only thing MicroStrategy is capable of is a leveraged speculative position in Bitcoin, then it has nothing going for it,” Schiff wrote.

He did not specify where exactly Saylor’s words were uttered; however, one Twitter user said Schiff’s interpretation was incorrect.

That is not what he said. You distort like those who said Saylor will sell when he said “I can even sell my bitcoins on a Saturday night”. He meant it works 24H.
Here he meant they couldn’t find anything else which protects the company assets.

— BullsEye (@GhostofHayek) December 21, 2022

“That is not what he said. … Here he meant that they [MicroStrategy] couldn’t find anything else that would protect the company’s assets,” he clarified.

Saylor has repeatedly described Bitcoin as “the most reliable thing in a volatile world” and “a global reserve asset.” In August he left the post as CEO of MicroStrategy and stated that the purchase of the first cryptocurrency as a reserve asset was justified.

As of writing, the company owns 130,000 BTC worth about $2.2 billion.

Later Schiff also weighed in on Bitcoin’s prospects. In his view, prices will not return to their previous highs, even when crisis-era financial assets recover.

The fact that #Bitcoin fell along with financial assets doesn’t mean that it will rise once those markets turn. Bitcoin isn’t a financial asset. It’s a collectable digital token. The Bitcoin bubble popped and collectors will be selling no matter what happens to financial assets.

— Peter Schiff (@PeterSchiff) December 19, 2022

“Bitcoin is not a financial asset. It’s a collectible digital token. The Bitcoin bubble has burst, and collectors will sell whatever happens to financial assets,” wrote the gold advocate.

“More like a fool’s asset. So as long as people are foolish enough to buy #Bitcoin the price will go up. Unfortunately for Bitcoin holders though there are plenty of fools in the world, I don’t think there are many left willing to buy Bitcoin who don’t already own it.”

— Peter Schiff (@PeterSchiff) December 19, 2022

«[…] К сожалению для ходлеров, хотя в мире достаточно дураков, я не думаю, что осталось много желающих купить биткоин [среди тех,] кто им не владеет», — добавил президент Euro Pacific Capital.

Earlier in December Schiff predicted that digital gold would fall below $5,000 and urged investors not to make the mistake of thinking the first cryptocurrency would form a floor at around $17,000.

In October, the gold advocate criticised Saylor and CNBC for advertising Bitcoin, accusing them of pumping the asset.

Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.