Peter Schiff Criticizes Strategy Inc.’s Bitcoin Approach Amid Stock Decline

• Strategy Inc.’s share price has declined by 6% in 2025 despite Bitcoin yielding a 6.9% return, raising concerns about its leveraged strategy.
• The company’s NAV premium has dropped from 148% to 60%, signaling reduced investor confidence and shareholder dilution issues.
• Schiff warns that debt-financed Bitcoin acquisitions may pose risks if BTC prices fall, with convertible notes adding potential volatility.

Economist Peter Schiff has voiced concerns about Strategy Inc.’s approach to Bitcoin investment, noting its stock has underperformed despite Bitcoin’s positive return this year. Schiff highlighted that while Bitcoin has gained 6.9% in 2025, Strategy Inc.’s stock ($MSTR) has dropped by 6%. He pointed to shareholder dilution as a major factor behind the declining premium on the company’s Bitcoin holdings.

Net Asset Value Premium Drops Significantly

The premium on Strategy Inc.’s Bitcoin reserves has seen a sharp decline. According to the MSTR Tracker, the premium fell from 148% on January 19 to 60%, reflecting a drop in investor confidence. The NAV premium measures how the market values the company relative to its Bitcoin position. A lower premium suggests skepticism about Strategy Inc.’s ability to sustain its leveraged Bitcoin strategy.

Schiff also criticized Strategy Inc.’s decision to fund Bitcoin acquisitions through convertible debt. He noted that Bitcoin’s recent 2.5% gain contrasts with the company’s 4.5% stock decline, indicating investor hesitation regarding its $2 billion convertible note issuance. Schiff warned that if the company’s stock continues trading below the value of its Bitcoin holdings, returns could turn negative, increasing financial risk.

Debt Exposure and Market Skepticism

The company Strategy Inc. made a vigorous move into Bitcoin assets through an acquisition of 20,356 BTC worth $1.99 billion. The company now holds 478,740 BTC which has a value exceeding $44 billion in total. The acquisition relied on two funding sources including a market-based equity program and a complete subscription of $2 billion convertible note issuance.

The 0% coupon note requires payment in 2030 yet it can be redeemed or converted by Strategy Inc. before that date. The $1,000 notes issued by Strategy Inc. allow owners to obtain 2,072 shares priced at $433.43 per share while the market values the shares at 35% higher than their present value.

Bitcoin Holdings and Market Position

The current acquisition makes Strategy Inc. the holder of more than 2% of Bitcoin tokens currently in circulation. The company’s large institutional Bitcoin position is much stronger but various analysts are concerned about the debt-based acquisition approach. .

The company’s financial responsibilities might be in danger when Bitcoin prices decrease because Schiff has consistently cautioned about debt levels becoming unsustainable.

Bitcoin maintained a value of $92,008.74 as information was compiled with a 3.42% decrease registered within the recent twenty-four hours. The approach Strategy Inc. uses to invest in Bitcoin remains controversial because skeptics doubt its ability to sustain its debt-based Bitcoin acquisition long-term.