Peter Schiff: 'Strategy’s Entire Business Model Is a Fraud,' Challenges Michael Saylor to a Debate

Core Viewpoint - Peter Schiff has publicly accused Strategy (MSTR) of operating a fraudulent business model, particularly criticizing its Bitcoin treasury strategy, and has challenged Michael Saylor to a debate on the matter [2][6]. Group 1: Business Model and Criticism - Strategy's business model relies on continuously raising funds to purchase more Bitcoin, which has led to allegations of it resembling a Ponzi scheme due to its use of new capital to repay previous debts [3][4]. - Schiff claims that regardless of Bitcoin's performance, MSTR is likely to face bankruptcy, highlighting the skepticism surrounding Saylor's digital asset treasury model [2][4]. - Critics argue that the reliance on new fundraising to service existing debts raises significant concerns about the sustainability of Strategy's operations [4][6]. Group 2: Market Performance and Risks - Following recent market downturns, Strategy's market capitalization briefly fell below the value of its Bitcoin holdings, raising fears that the company may need to liquidate assets [5]. - Saylor has asserted that Strategy could withstand an 80% decline in Bitcoin value without missing dividend payments, although market sentiment has turned bearish [5]. - The firm benefits from a lower average purchase price for Bitcoin due to its long-term accumulation strategy, which may mitigate some risks compared to newer entrants in the digital asset space [4].