Strategy’s leveraged Bitcoin approach came under fresh scrutiny on Sunday as critics questioned whether Michael Saylor’s company can withstand prolonged market stress.
Among the most vocal was longtime Bitcoin detractor Peter Schiff, who chairs Schiff Gold and serves as chief global strategist at Euro Pacific Asset Management.
In a series of posts on
He also said he believes the company will “eventually go bankrupt” and challenged Saylor to debate him at Binance Blockchain Week in Dubai in early December. Their invitations seemed designed, at least in part, to draw Saylor into a public confrontation over the company’s approach to bitcoin holdings.
Jeff Dorman, chief investment officer at digital asset management company Arca, offered a markedly different view. In his own post on Dorman did not directly reference Schiff, but his comments addressed broader claims circulating among skeptics who argue that the strategy could face severe pressure if bitcoin prices fall sharply.
Dorman said Saylor’s 42% ownership makes an activist takeover “nearly impossible” and noted that none of Strategy’s debts include agreements that would force the company to liquidate bitcoin. He added that the company’s legacy software business still generates positive cash flow, helping to support interest expenses that he described as manageable. Borrowers also rarely default on their obligations solely because the due date is approaching, he said, arguing that lenders often agree to extend deadlines in what he called a familiar “extend and pretend” dynamic.
Strategy stock has been under pressure despite its growing position in bitcoin. Class A shares closed at $199.74 on Friday, down 4.22% on the day and down 33.42% so far this year. Over the same period, bitcoin has returned around 0.4%.
According to StrategyTracker, which tracks corporate bitcoin treasuries, Strategy’s diluted NAV multiple sits near 1.06x, meaning the stock is trading only modestly above a conservative estimate of its bitcoin-backed value after accounting for all possible future options, warrants and convertible debt actions.
Dorman added that Strategy is no longer a significant marginal buyer of bitcoin relative to ETF inflows, but said this does not make the company a systemic risk. “If you follow anyone who says MSTR is a risk to BTC, tell them to call me,” he wrote.
Bitcoin was trading around $94,293 at 11 pm UTC, down 1.2% in the last 24 hours.
