Peter Schiff Predicts 'Brutal' Bear Market For Bitcoin Treasury Companies, Labels Michael Saylor's Business Strategy 'Harebrained'

Core Viewpoint - Economist Peter Schiff warns of a severe bear market for Strategy Inc. and similar companies holding large Bitcoin reserves, predicting that many will not survive the downturn [1][2]. Company Performance - Strategy Inc. has seen a 45% decline from its November 2024 high of $543, currently trading at $300.70, despite an impressive year-over-year return of 81% [3][4]. - Other companies like Riot Platforms and MARA Holdings have also experienced significant declines, with Riot Platforms down 99.53% from its all-time high [4]. Market Context - The warning from Schiff comes amid a sharp pullback in Bitcoin's price, which has negatively impacted shares of Bitcoin treasury companies [3]. - Bitcoin itself has dropped 6.22% weekly but remains up 71.92% year-over-year, currently priced at $109,544.46 [4]. Contrasting Views - Michael Saylor, CEO of Strategy Inc., has expressed confidence in the company's resilience, claiming it could withstand an 80% drawdown in Bitcoin prices and emphasizing a shift to a perpetual preferred stock strategy [5]. - Saylor argues that Bitcoin treasury companies are leading a financial rebuild, leveraging digital capital and intelligence, and encourages ignoring critics [6].