Peter Schiff on MSTR and Bitcoin Crash: Investors Will Not Be Fine Losing 90% of Investment

According to him, a fall in Bitcoin‘s price would affect the stock’s value more than many expect.

Peter Schiff noted that MicroStrategys heavy exposure to Bitcoin increases risk. He said that when Bitcoin prices fall sharply, the stock could decline faster than the asset itself.

His post raised questions about how much investors understand the potential downside. Schiff also noted that a large drop in Bitcoin could reduce confidence in the MSTR stock.

Investors might react strongly to market changes, creating a bigger drop in MSTR than Bitcoin alone.

Schiffs post emphasizes the need for shareholders to be aware of the possible risks.

Michael Saylor Defends Strategys MSTR Model

Earlier this week, Michael Saylor responded to concerns about Strategys model. He said the company is a publicly traded operating business, not a fund, trust, or holding company.

Saylor explained that MicroStrategy has a $500 million software business and uses Bitcoin as part of its treasury strategy.

He said the company has issued five digital credit securities this year, with a total notional value of more than $7.7 billion.

Saylor also discussed the launch of Stretch, a Bitcoin-backed credit instrument that provides a variable monthly yield.

Saylor said MicroStrategy is not a passive vehicle. He emphasized that the company creates, structures, and operates financial products.

The Strategy chairman added that no fund or holding company could carry out the same activities.

He said the companys goal is to build a digital monetary institution on a foundation of sound money.

MSTR and MSCI Link | Source: Michael Saylor

Saylor confirmed that MicroStrategys commitment to Bitcoin remains strong. He said the firm is focused on long-term strategy and financial innovation.

Saylors statement underlines that the company is not simply holding Bitcoin. It is actively using the asset in its business operations.

The firm wants to combine capital markets and software innovation with Bitcoin exposure.

Bitcoin Outlook: Price Shows Clear Downtrend

It is worth noting that the largest digital asset, Bitcoin, continues to trade lower in the market.

Bitcoin price fell from a recent peak of $116,381 to a low of $80,537 with little upward movement. The chart shows a downtrend that suggests selling pressure is strong.

Trading volume has increased as prices approached the lows. Recent candlesticks have small bodies, indicating uncertainty in the market.

Bitcoin would need to rise to $87,000 to $90,000 to regain momentum. So far, it has not shown strong signs of recovery.

Bitcoin is currently trading at $83,758.96, with a market cap of $1.67 trillion. Daily trading volume stands at $77.76 billion, down 42.91%.

The chart suggests the market is cautious and that prices could continue to move lower if selling pressure persists.

Market watchers remain worried that a continued downtrend in Bitcoin could affect companies like MicroStrategy and its stock MSTR.

Any further decline may impact investor sentiment and stock performance. This trend highlights the connection between Bitcoin prices and firms holding significant amounts of the asset.