{"id":91114,"date":"2025-11-17T15:48:37","date_gmt":"2025-11-17T12:48:37","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=91114"},"modified":"2025-11-17T15:51:57","modified_gmt":"2025-11-17T12:51:57","slug":"peter-schiff-calls-strategys-model-fraudulent-and-challenges-michael-saylor-to-a-debate","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/peter-schiff-calls-strategys-model-fraudulent-and-challenges-michael-saylor-to-a-debate\/","title":{"rendered":"Peter Schiff calls Strategy\u2019s model &#8216;fraudulent&#8217; and challenges Michael Saylor to a debate"},"content":{"rendered":"<p>Peter Schiff, a noted crypto critic and gold advocate, said the financial architecture of Strategy, the largest public holder of bitcoin, is built on \u201cfraud\u201d.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">MSTR\u2019s business model relies on income-oriented funds buying its \u201chigh-yield\u201d preferred shares. But those published yields will never actually be paid. Once fund managers realize this they\u2019ll dump the preferreds &#038; <a href=\"https:\/\/twitter.com\/search?q=%24MSTR&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$MSTR<\/a> won\u2019t be able to issue any more, setting off a death spiral.<\/p>\n<p>\u2014 Peter Schiff (@PeterSchiff) <a href=\"https:\/\/twitter.com\/PeterSchiff\/status\/1990100598667018595?ref_src=twsrc%5Etfw\">November 16, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cMSTR\u2019s business model entirely depends on funds buying its \u2018high-yield\u2019 preferred shares. But the stated yield will never actually be paid. Once managers realise this, they will dump the securities,\u201d he wrote.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>According to Schiff, this will trigger a \u201cdeath spiral\u201d: the company will lose the ability to raise financing through debt instruments.<\/p>\n<p>Asked why Strategy might not pay dividends, the expert <a href=\"https:\/\/x.com\/PeterSchiff\/status\/1990105834706121128\">said<\/a>:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cPayment of dividends is solely at the discretion of MSTR\u2019s board of directors. The company has no obligation to declare them and faces no penalties if it does not. Unpaid dividends do not accrue\u2014the right to receive them is lost irrevocably.\u201d\u00a0<\/em><\/p>\n<\/blockquote>\n<p>Users disagreed, <a href=\"https:\/\/x.com\/jcolaco\/status\/1990128857312084318\">accusing<\/a> him of spreading <span data-descr=\"Fear, Uncertainty, and Doubt \u2014 fear, uncertainty and doubt\" class=\"old_tooltip\">FUD<\/span>.<\/p>\n<p>In a separate post, Schiff <a href=\"https:\/\/x.com\/PeterSchiff\/status\/1990114632577478751\">invited<\/a> Strategy founder <a href=\"https:\/\/forklog.com\/en\/news\/michael-saylor-the-microstrategy-founders-biography-and-views\">Michael Saylor<\/a> to debate during Blockchain Week in Dubai in December. He has yet to respond\u2014so Helius Labs CEO Mert Mumtaz <a href=\"https:\/\/x.com\/0xMert_\/status\/1990136711385678108\">put himself forward<\/a> instead:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIt seems pretty straightforward to me. I\u2019d be happy to argue with you on any crypto topic. At stake: at least $10m in <a href=\"https:\/\/forklog.com\/en\/news\/what-is-zcash-zec\">ZEC<\/a> for the loser.\u201d\u00a0<\/em><\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Opinions split<\/h2>\n<p>A user posting as Cryptoguy noted that Strategy does not depend on preferreds to survive\u2014the company issues them only to buy bitcoin, not to finance operations.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cEven if issuance slows, there will be no collapse\u2014they will simply use less leverage. Calling this a \u2018death spiral\u2019 is a major exaggeration,\u201d he stressed.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>The crypto critic replied that, if it loses the ability to generate returns from digital gold, the firm will forfeit a key source of its market value. Cryptoguy countered that Strategy\u2019s value lies in providing institutional access to bitcoin with leverage and high liquidity.<\/p>\n<p>Crypto enthusiast Shagun Makin noted that in every cycle \u201csomeone declares MSTR a ticking time bomb\u201d. Yet, he said, the company\u2019s strategy has so far passed every test.<\/p>\n<p>Some agreed with Schiff. Among them was Scott McClintic, a supporter of bitcoin and Zcash and the founder of the wagering project The Home of FAIR PLAY.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cI believe in BTC and ZEC, but Saylor\u2019s strategy does not withstand scrutiny. You can\u2019t call the scheme \u2018raise capital, buy bitcoin, rise with it and lock in profits\u2019 arbitrage. It\u2019s a financial pyramid that feeds on itself. Liquidity providers are asking to fail. The model is unstable,\u201d he said.\u00a0<\/em><\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Strategy\u2019s premium falls below 1<\/h2>\n<p>Schiff\u2019s comments came amid an ongoing bitcoin correction and <span data-descr=\"market value to net assets multiple\" class=\"old_tooltip\">mNAV<\/span> at Strategy falling below 1\u2014for the first time since the start of the crypto-treasury boom. At the time of writing, the metric had recovered to 1.21.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"408\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-e5b0f65f80871772-9776226730205450-1024x408.png\" alt=\"image\" class=\"wp-image-269891\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-e5b0f65f80871772-9776226730205450-1024x408.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-e5b0f65f80871772-9776226730205450-300x119.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-e5b0f65f80871772-9776226730205450-768x306.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-e5b0f65f80871772-9776226730205450-1536x612.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-e5b0f65f80871772-9776226730205450.png 1858w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.strategy.com\/strategy\">Strategy<\/a>.\u00a0<\/figcaption><\/figure>\n<p>A lower reading means the firm\u2019s market value is below the value of its bitcoin holdings net of liabilities. That points to a high share of debt financing.<\/p>\n<p>The last time this happened was in early 2024.<\/p>\n<p>Investors consider an mNAV of 2 or higher sustainable for a treasury company. Since July, Strategy\u2019s shares have fallen by more than 50% and, at the time of writing, trade at about $199.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"461\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-21b12fc0b61b865b-9776240798274896-1024x461.png\" alt=\"image\" class=\"wp-image-269892\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-21b12fc0b61b865b-9776240798274896-1024x461.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-21b12fc0b61b865b-9776240798274896-300x135.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-21b12fc0b61b865b-9776240798274896-768x346.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-21b12fc0b61b865b-9776240798274896-1536x692.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-21b12fc0b61b865b-9776240798274896.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/finance.yahoo.com\/quote\/MSTR\/\">Yahoo Finance<\/a>.\u00a0<\/figcaption><\/figure>\n<p>Strategy oversees 641,205 BTC worth over $61bn, according to <a href=\"https:\/\/bitbo.io\/treasuries\/\">BitBo<\/a>.<\/p>\n<p>Bitcoin trades around $95,300. According to <a href=\"https:\/\/www.coingecko.com\/\">CoinGecko<\/a>, over the past 24 hours its price <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-plummets-to-six-month-low\">slipped<\/a> 0.4%, and over the week\u201410.2%. Analysts <a href=\"https:\/\/forklog.com\/en\/news\/analysts-attribute-bitcoins-decline-to-panic-among-new-investors\">explained<\/a> the drop by panic among new investors.<\/p>\n<p>In early November, Kynikos Associates <a href=\"https:\/\/forklog.com\/en\/news\/investors-signal-market-shift-by-exiting-shorts-against-strategy\">closed<\/a> a short position against Strategy\u2019s shares. Its founder, James Chanos, attributed the move to the decline in the company\u2019s mNAV.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Peter Schiff, a noted crypto critic and gold advocate, said the financial architecture of Strategy, the largest public holder of bitcoin, is built on \u201cfraud\u201d.<\/p>\n","protected":false},"author":1,"featured_media":91115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Strategy\u2019s mNAV fell below 1 for the first time since early 2024","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,1208,1207,1298],"class_list":["post-91114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-michael-saylor","tag-microstrategy","tag-peter-schiff"],"aioseo_notices":[],"amp_enabled":true,"views":"194","promo_type":"1","layout_type":"1","short_excerpt":"Strategy\u2019s mNAV fell below 1 for the first time since early 2024","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/91114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=91114"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/91114\/revisions"}],"predecessor-version":[{"id":91116,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/91114\/revisions\/91116"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/91115"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=91114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=91114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=91114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}