Peter Schiff Doubts MicroStrategy’s True Motives for Acquiring Bitcoin | Bitcoinist.com
Michael Saylor’s MicroStrategy is currently in the limelight, as Gold advocate and Bitcoin critic Peter Schiff spells out the real intentions behind the tech company’s large BTC accumulation over time.
Peter Schiff Unveils Michael Saylor’s Intentions In Bitcoin Buys
Peter Schiff disclosed the information about the Tysons-based tech firm on the social media platform X on Tuesday, causing quite a stir within the crypto community. Firstly, Schiff highlighted that the firm is currently “suffering a loss of over $115 million on the Bitcoin it recently purchased using borrowed funds.”
As a result, Schiff is curious why Michael Saylor continues to take out loans from its MSTR shares to purchase BTC, following a significant increase in the coin’s price.
According to the Gold advocate, it appears Michael Saylor carried out these moves with the main aim of “manipulating the price of Bitcoin to move up” while “selling off his own MSTR shares.”
The post read:
MSTR is already down over $115 million on the BTC it just bought with borrowed money. I wonder why Michael Saylor always borrows money to buy Bitcoin after a big move-up. It looks like his true intention is to manipulate the Bitcoin price higher as he dumps his own MSTR shares.
Schiff also mentioned in another X post that MicroStrategy shares are “down by over 16%,” which might be due to the company selling the stocks to acquire more BTC. “Bitcoin Spot Exchange-Traded Funds (ETFs) they have boosted are down by 6% and MSTR has fallen by 16%,” Schiff stated.
He further claimed that even after more than 3 hours of market coverage, “not once did CBNC talk about BTC nor the company’s favorite stock MSTR.” In addition, he stated that “CBNC is not telling its audience anything, while Bitcoin whales discreetly liquidate their stockpiles.”
Schiff’s revelation came in light of MicroStrategy‘s latest Bitcoin acquisition, purchasing around 9245 BTC valued at $623 million, in one week. MicroStrategy completed another convertible note offering to expand its BTC holdings, and presently, the company boasts 1% of the crypto asset’s overall supply.
When it comes to Bitcoin, Microstrategy has become one of the largest entities devoted to holding the digital asset. So far, the company has acquired about 190,000 BTC worth approximately $9.9 billion and does not have any plans to sell the asset.
Problem With Owning BTC Through ETFs
Schiff continues to criticize the largest cryptocurrency asset, expressing concerns regarding owning BTC through exchange-traded products. According to Schiff, “owning the coin” through an ETF has several setbacks, one of which is its “limited liquidity to US market hours.”
This is because if the market crashes during the night, investors will be “unable to sell” until the US market opens for business again the following morning, which can be extremely annoying to watch helplessly while being “unable to get out.” Thus, he believes that having your own BTC is a far “better choice” than paying a third party to store it with limited liquidity.
BTC trading at $63,114 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from iStock, chart from Tradingview.com
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