Michael Saylor dismisses Schiff's warning that 'MSTR will collapse,' citing 36% annual profits from Bitcoin

Michael Saylor, CEO of MicroStrategy, has refuted gold investor Peter Schiff’s warnings that MSTR stock could collapse, while pointing out that since the company shifted to a Bitcoin strategy in August 2020, Bitcoin’s annual returns have reached 36%, outpacing gold (16%) and the S&P 500 (14%).

The debate erupted when Peter Schiff recommended reducing his position in MSTR stock, arguing that Bitcoin’s 5-year growth cycle has only reached 12%, trailing even the Nasdaq, gold, and silver. He warned that if a market downturn lasts long enough, the premium at which MSTR stock is trading relative to net asset value could turn into a discount, and debt repayment could become more difficult.

However, Saylor replied by posting a chart comparing asset performance since August 2020, showing that Bitcoin is the best-performing asset, and that this gap would widen further when considering the long term.

Although MicroStrategy is currently sitting on an unrealized loss of about $3 billion because the current price of Bitcoin (~$67,000) is below its average purchase price (~$75,700), Saylor remains confident in the company’s Bitcoin strategy.

The standoff between Schiff and Saylor is not just a debate about charts, but also a test of whether a public company can survive and grow by using an extremely volatile digital asset as its only underlying foundation—especially when that asset has not shown explosive growth over the full 5-year period.

Source: U.Today