Peter Schiff publicly targets 'Strategy'… "Bitcoin unrealized gains/losses will keep growing"

Gold investment advocate Peter Schiff has squarely criticized Strategy’s large-scale Bitcoin (BTC) investment strategy. He argues that with Bitcoin trading below the company’s average purchase price, the burden from unrealized gains and losses could widen.

According to AMBcrypto on the 4th (local time), Schiff took issue with the investment performance of Strategy’s Bitcoin holdings, saying, “As of now, the company’s Bitcoin investment has effectively produced no results.” Noting that Bitcoin is trading around $73,000, he added that it is “already below Strategy’s average purchase price of $76,000.”

Schiff said, “For now it’s only about a 3% unrealized loss, but the loss could grow much larger over time,” and argued that “over the next five years, the situation is likely to get worse.” He added, “The claim that Bitcoin is the world’s best-performing asset does not match reality.”

He stressed that his negative view of Bitcoin’s nature as an asset has not changed. Schiff said, “Bitcoin has not gone through enough history and verification to definitively call it a long-term store of value.”

These remarks came as Bitcoin has continued to trend weaker amid a recent pullback across risk assets. Bitcoin’s volatility has increased alongside a correction in tech stocks, and Strategy shares (MSTR) are also weakening. Strategy is said to have posted Bitcoin-related unrealized losses of more than $900 million as of the latest figures.

Still, some in the market counter that Schiff’s criticism is an assessment focused on short-term price moves. They note that Strategy’s Bitcoin purchases have been made across multiple market cycles, and that the recent pullback is largely driven by the macro backdrop and shrinking liquidity.

Strategy currently holds more than 713,500 BTC, making it the world’s largest corporate holder of Bitcoin. Schiff has previously and repeatedly criticized Strategy’s Bitcoin strategy, saying it is “not sustainable” and will “ultimately come back as a financial burden on the company.”

If Bitcoin continues to trade below the average purchase price, the debate surrounding Strategy’s investment strategy is expected to persist for some time.