Peter Schiff Reveals Michael Saylor’s Motives Behind Bitcoin Purchases
In a recent social media post, Peter Schiff shared some insights into the intentions of Michael Saylor’s tech company, MicroStrategy, regarding its significant Bitcoin accumulation. According to Schiff, MicroStrategy is currently facing a loss of over $115 million on its recent Bitcoin purchases made with borrowed funds. This raises questions about why Saylor continues to take out loans to buy BTC, especially after the coin’s price has increased significantly.
Schiff suggests that Saylor’s true intention may be to manipulate the price of Bitcoin to benefit himself while selling off his own MSTR shares. He points out that MicroStrategy shares have already fallen by over 16%, potentially due to the company selling stocks to acquire more BTC. Additionally, Schiff criticizes CNBC for not covering Bitcoin or MicroStrategy’s stock performance while claiming that Bitcoin whales are discreetly liquidating their holdings.
These revelations come after MicroStrategy recently purchased around 9,245 BTC worth $623 million in just one week. The company has become one of the largest holders of Bitcoin, with approximately 190,000 BTC valued at around $9.9 billion. Despite criticism and market volatility, MicroStrategy has no plans to sell its BTC holdings.
The Drawbacks of Owning BTC Through ETFs
Schiff continues to express his concerns about owning Bitcoin through exchange-traded products (ETFs). He argues that ETFs have several setbacks compared to owning the actual coin:
- Limited liquidity during US market hours: If the market crashes overnight, investors are unable to sell until the US market opens the next day.
- Dependency on third parties: Paying a third party to store BTC can result in limited liquidity and lack of control over one’s assets.
Schiff believes that owning Bitcoin directly is a better choice, as it provides more control and eliminates the limitations of ETFs.
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