Schiff responds to Saylor: The strategy of betting on Bitcoin is nearing the break-even point. Will MicroStrategy (MSTR) become the next "risk example" in the market?

As Bitcoin prices repeatedly fluctuate around $76,000 and are now approaching the $70,000 mark, the longstanding debate between gold advocate Peter Schiff and Bitcoin steadfast supporter Michael Saylor has reignited. Schiff directly criticizes Strategy’s Bitcoin holdings, which amount to approximately $54 billion, claiming they “hardly create any real value,” and mocks that its current price has nearly reached the company’s average cost basis, implying that this high-stakes gamble is on the verge of breaking even or incurring losses.

Schiff states that, based on the current price, Strategy has an unrealized loss of about 3%, and warns that risks could further increase over the next five years. He emphasizes that Bitcoin’s history is still too short to be considered a reliable long-term store of value. In his view, the company’s high concentration of assets in a single cryptocurrency inherently carries systemic risks.

Meanwhile, Saylor’s camp argues that this assessment overlooks the impact of macroeconomic conditions and liquidity cycles. Some community members point out that Strategy’s buying pace spans multiple market phases, and short-term price declines are more likely due to macro tightening and reduced risk appetite rather than a failure of Bitcoin’s fundamentals. The contraction of dollar liquidity and weakness in the US stock market have forced investors to reprice all high-volatility assets.

In terms of market performance, Strategy recently disclosed an unrealized paper loss exceeding $900 million, with MSTR’s stock price falling back to around $133, down more than 6% for the day. Bitcoin also weakened slightly during the same period, further fueling concerns about the company’s financial stability. Nevertheless, Strategy remains the largest corporate holder of Bitcoin globally, with over 710,000 coins, a scale that still holds symbolic significance within the institutional sector.

This “gold versus Bitcoin” value debate is no longer just a clash of individual opinions but a long-term contest between two asset logics. Whether short-term fluctuations will shake Strategy’s confidence remains uncertain, but as the cost basis and market price continue to narrow, risk management and capital structure issues are being pushed into sharper focus.