TLDR
- Peter Schiff said Strategy would have earned more by avoiding Bitcoin.
- He claimed the firm’s Bitcoin investment delivered only a 3% annual return.
- Schiff faced criticism for assuming all Bitcoin was bought at the same price.
- Analyst Willy Woo said Schiff used inaccurate methods to calculate returns.
- Venture capitalist Revaz Shmertz disagreed with Schiff’s approach to investment comparisons.
Peter Schiff criticized Strategy’s Bitcoin approach, arguing the company would have outperformed by choosing other asset classes instead. The firm’s Bitcoin holdings delivered weaker annual returns than expected, according to Schiff’s latest comments on X.
Schiff Says Bitcoin Dragged Down Strategy’s Performance
Peter Schiff claimed Strategy’s five-year Bitcoin buying streak yielded poor performance compared to traditional assets like gold. He stated, “With an average cost of $75K, the company has a ‘paper profit’ of just 16%.” He added that this translates to only a 3% annual return over the same period.
Schiff’s comments quickly triggered backlash from analysts and market watchers across social media platforms. Many critics pointed out flaws in Schiff’s assumptions regarding Strategy’s cost basis and asset acquisition timelines. They argued that Schiff ignored the dollar-cost averaging method used by the company.
Crypto analyst Willy Woo responded by saying Schiff miscalculated by assuming all purchases happened at one price point. Woo explained that Strategy made purchases at different prices over time, which changed the actual return profile. He said the methodology Schiff used was inaccurate and misleading.
Experts Disagree With Schiff’s Metrics
Venture capitalist Revaz Shmertz also weighed in, criticizing Schiff’s understanding of investment performance. He stated that Schiff’s comparison does not match how actual returns are calculated by investment firms. Shmertz added that the Strategy’s financial management should be assessed using proper portfolio valuation methods.
Despite market volatility, Strategy has continued to build its Bitcoin position consistently over the past five years. The firm’s accumulation strategy involves purchasing during both market highs and lows, as shown in public filings. This approach contrasts sharply with the assumptions made in Schiff’s argument.
Strategy has tied its corporate identity to Bitcoin since CEO Michael Saylor began the aggressive purchasing campaign. Over time, the firm has used both debt and equity offerings to expand its crypto treasury. Its long-term strategy remains focused on holding rather than trading.
Strategy Adds More Bitcoin, Strengthens Cash Position
On Monday, Strategy announced it had purchased another 1,229 Bitcoin to increase its total holdings. This acquisition raised its overall Bitcoin balance to 672,497 BTC, according to the company’s disclosure. The company made the announcement early Monday morning via a press release.
At current market prices, Strategy’s holdings are valued at over $59 billion based on TradingView’s latest BTC data. Bitcoin has risen about 219% over the last five years, far outpacing many traditional assets. In comparison, gold has gained a little over 130% during the same timeframe.
Strategy also revealed it now holds a cash reserve of $2.2 billion for future operational needs. This buffer ensures the company can meet its financial obligations without selling any Bitcoin holdings. The firm confirmed that it does not intend to liquidate its Bitcoin position in the near term.
Strategy’s stock (MSTR) fell further on Monday, reflecting broader weakness in Bitcoin-linked equities in 2025. Year-to-date, MSTR is down 46%, according to data provided by Yahoo Finance. Analysts continue to watch Strategy’s performance closely in relation to Bitcoin’s price movement.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
