Schiff Vs. Saylor: Is MicroStrategy’s Bitcoin Hoard A Golden Illusion? - Strategy (NASDAQ:MSTR)

Michael Saylor's $69.5 billion Bitcoin BTC/USD bet may look dazzling on paper — but Peter Schiff says it's fool's gold.

In a sharp critique, the gold bug argues that Strategy Inc.'s MSTR 47% paper gain on its Bitcoin hoard is fragile, because the company can't actually cash it out without triggering a crash.

Track MSTR stock here.

In Schiff's telling, Saylor would've been far better off buying gold (as tracked by the SPDR Gold Trust GLD), which would have turned that same investment into $61.5 billion — slightly less profit, but infinitely more liquid.

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Paper Rich, Cash Poor?

Schiff's math puts the comparison into stark relief. Strategy's Bitcoin buys— $47.33 billion worth over time — now show $22 billion in paper gains. But in gold, the gain would have been around $14.2 billion.

The gap? Roughly $7.8 billion. Schiff calls it an illusion: while gold's gains are smaller, the metal's market can absorb a $61.5 billion liquidation without breaking stride. Bitcoin, on the other hand, is a thinly traded pond compared to gold's ocean.

If the largest corporate Bitcoin buyer suddenly sells it, Schiff warns, mass panic would follow, erasing those paper profits overnight.

The Bigger Risk: Fragile Faith

What Schiff is really flagging isn't just liquidity — it's psychology. Bitcoin's cult status hinges on trust that whales such as Saylor won't dump. A fire sale from Strategy could shatter confidence, sparking cascading liquidations. In that scenario, the 47% gain flips to an outright loss, leaving Strategy investors holding the bag.

Gold doesn't carry that same existential fragility. Schiff's conclusion is blunt: Bitcoin's upside is eye-catching, but gold would've left Strategy in a "far stronger position."

Investor Takeaway

Investors chasing Bitcoin through Strategy must reckon with a paradox: big gains on paper can vanish in practice if liquidity dries up. Schiff's jab reminds markets that Bitcoin's brilliance rests on confidence — and that confidence, unlike gold, can crack.

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