Gold advocate Peter Schiff has renewed his criticism of Bitcoin and Strategy co-founder Michael Saylor, warning that BTC could eventually fall toward $20,000.
Such a move would represent a decline of nearly 70% from current levels. Schiff also questioned Strategy’s decision to raise capital by issuing shares instead of selling part of its massive Bitcoin holdings.
The economist believes Saylor has placed the company in a difficult position, while investors who continue holding Bitcoin could face significant losses if the market weakens further.
Schiff Criticizes Strategy’s Latest Share Sale
Strategy, formerly known as MicroStrategy, holds more than 847,000 BTC and remains the world’s largest publicly traded corporate Bitcoin holder.
During a recent podcast episode, Schiff examined the company’s latest financial moves and argued that its strategy is becoming increasingly difficult to sustain.
Recent developments include:
- Strategy refraining from buying Bitcoin for three consecutive weeks.
- The company maintaining its position after a recent sale involving 3,588 BTC.
- Strategy raising approximately $450 million through the issuance of common shares.
The latest capital raise increased the company’s cash reserves to around $3 billion. However, Strategy’s market value currently trades at a significant discount to the value of the Bitcoin held on its balance sheet.
Schiff described the share issuance as an illogical dilution of existing shareholders. In his view, the company chose to raise fiat currency by selling undervalued equity rather than using part of its Bitcoin reserves.
Schiff Says Strategy Is Trapped by Its Bitcoin Holdings
According to Schiff, Strategy has reached a point where selling Bitcoin could damage both the asset’s price and investor confidence in the company.
He argued that Saylor is reluctant to reduce the position because any large-scale sale could trigger additional market pressure. However, Schiff believes investors already understand the risks created by Strategy’s enormous exposure to BTC.
“Saylor knows if he starts really selling Bitcoin, the price is going to crash,” Schiff said. “Now, the problem is it’s going to crash anyway because the market realizes the bind he’s in, and even if he doesn’t sell, the market is going to crash out from under him.”
Schiff believes this leaves Strategy with limited options. The company must either continue issuing securities, take on additional debt or eventually sell part of its Bitcoin reserves.
Why Peter Schiff Expects Bitcoin to Fall Toward $20,000
Schiff identified resistance near $65,000 and support around $58,000. He warned that a sustained break below that support could push Bitcoin under $50,000.
From there, he sees a possible decline toward the $30,000-$20,000 range, levels BTC has not traded near for several years.
Despite his long-standing criticism of Bitcoin, Schiff partially softened his historical position. He acknowledged that buying BTC 15 years ago would have produced exceptional returns, although he said he does not regret avoiding the asset in more recent years.
“I don’t regret not buying it three, four or five years ago,” Schiff said. “But 15 years ago, it certainly would have been worth it.”
At the time of publication, Bitcoin was trading slightly below $65,000 after gaining almost 5% over the previous week.
Corporate Bitcoin Strategies Face Greater Scrutiny
The debate extends beyond Schiff’s criticism of Saylor.
Professional investors are increasingly examining the risks associated with corporate Bitcoin treasury strategies, particularly when companies rely on debt or repeated share issuance to finance additional purchases.
Market participants are now paying closer attention to issuers’ debt loads, financing terms, equity dilution and the relationship between a company’s valuation and the value of its cryptocurrency holdings.
As a result, large corporate Bitcoin purchases are no longer automatically viewed as a sign of institutional confidence. Investors are increasingly questioning whether these strategies remain sustainable during prolonged market downturns.
