Saylor's Bitcoin Buying Strategy Crumbles as Yield Plunges
Key Summary
Gold bull and Bitcoin critic Peter Schiff has criticized Michael Saylor's Bitcoin-buying strategy, citing a disappointing year for the company's Bitcoin holdings, with a year-to-date yield of 3.7% in the red. Schiff argues that the strategy has failed to generate growth in Bitcoin per share, contradicting Saylor's earlier optimistic views.
Bitcoin Yield: A Mixed Bag for Saylor's Strategy
The data paints a mixed picture for Saylor's Bitcoin-buying strategy, with a year-to-date yield of 3.7% in the red. This indicates that the relentless buying of Bitcoin has not led to any growth in Bitcoin per share, contradicting Saylor's earlier optimistic views. The yield, which measures the percentage change in Bitcoin holdings for Strategy, has turned into an argument against Saylor's investment thesis.
A Contrarian View from Schiff
Schiff's statement comes after Saylor's latest announcement about Strategy buying 250 BTC more and repurchasing around $192 million of its preferred shares. The company's total Bitcoin holdings stand at a staggering 848,250 BTC, bought at a total cost of around $64 billion. However, the yield on these holdings is currently in the red, casting doubt on the company's investment strategy.
A Skeptic's Perspective
Schiff has long been a vocal critic of Bitcoin, arguing that it is a speculative asset with limited use cases. In recent comments, he expressed doubt about a recent Bitcoin rally, which he believes was driven in part by Strategy's most recent Bitcoin buy announcement. He also questioned the investment case for Bitcoin, suggesting that investors may have a better alternative: blockchain-based securities of profitable dividend-paying companies.