Economist Blasts Strategy’s Bitcoin Bet, Despite $8 Billion Profits, Here’s Why

bitcoinistPublished on 2025-12-30Last updated on 2025-12-30

Abstract

Economist Peter Schiff criticizes MicroStrategy's Bitcoin investment strategy despite the company reporting $8 billion in unrealized profits. Following MicroStrategy's latest $100 million Bitcoin purchase, Schiff argued that the company’s 16% total profit over five years—averaging just 3% annually—is underperforming compared to other assets like gold and silver. He contends that the firm would have achieved better returns with almost any alternative investment. MicroStrategy remains the largest corporate holder with 672,497 BTC, acquired at an average price of $74,997 per Bitcoin. Despite significant paper gains, Schiff views the returns as subpar given the scale and duration of the investment.

On Monday, December 29, 2025, Michael Saylor’s Strategy (formerly MicroStrategy) announced its latest Bitcoin purchase. The company had acquired over $100 million worth of the digital asset again, keeping in line with its consistent buying over the years. While Strategy’s large Bitcoin buys have often been a cause for celebration in the crypto community, not everyone believes that this is a good strategy. Mainly, world-renowned economist Peter Schiff has blasted the move, highlighting its profits so far as subpar.

Strategy’s Bitcoin Move Would Have Been Better With Any Other Asset

Schiff’s comments come hot on the heels of the Strategy announcement, showing a total of 1,229 BTC was bought at approximately $109 million. The average purchase price for the coins came out to around $88,568 once the purchase was done, adding to the already considerable Bitcoin holdings of the publicly-held company.

Less than 30 minutes after Strategy’s announcement, Peter Schiff took to the X (formerly Twitter) platform to share his thoughts on the move. Mainly, the economist is not impressed with how the company’s Bitcoin bet has played out so far, despite sinking over $50 billion into the digital asset.

Schiff points out that despite aggressively buying BTC over the last five years, Strategy’s profits sit at only 16%. Breaking this down over the number of years that the company has been buying Bitcoin, it averages out to around a 3% annual profit on the investment.

Given this, the economist believes that the company would’ve been better off if it had accumulated any other asset besides Bitcoin. Interestingly, the prices of other assets such as gold and silver have hit new all-time highs this year, while BTC has continued to struggle.

Breaking Down Strategy’s BTC Holdings

Presently, Strategy retains its title as the publicly-traded company with the highest amount of Bitcoin holdings. According to data from the data aggregation website, CoinGecko, Strategy currently holds 672,497 BTC, which accounts for 3.202% of the total Bitcoin supply.

The entire stack has cost the company a whopping $50.44 billion to accumulate, with an average price of $74,997 at the time of the last purchase. At a 16% profit margin so far, Strategy is currently sitting on over $8 billion in unrealized profits, down from its all-time high of $22 billion in profits when the Bitcoin price crossed $126,000 back in October.

BTC price struggles to recover | Source: BTCUSD on Tradingview.com

Related Questions

QWho criticized MicroStrategy's Bitcoin investment strategy despite its $8 billion profits?

AWorld-renowned economist Peter Schiff criticized MicroStrategy's Bitcoin investment strategy.

QWhat is the total amount of Bitcoin that MicroStrategy currently holds, and what percentage of the total supply does it represent?

AMicroStrategy currently holds 672,497 BTC, which accounts for 3.202% of the total Bitcoin supply.

QWhat is the average purchase price of MicroStrategy's Bitcoin holdings after their latest acquisition?

AThe average purchase price for MicroStrategy's Bitcoin holdings is $74,997 per BTC after the latest acquisition.

QAccording to Peter Schiff, what is the annualized profit percentage of MicroStrategy's Bitcoin investment over the years?

APeter Schiff stated that MicroStrategy's Bitcoin investment has averaged around a 3% annual profit.

QHow much did MicroStrategy's most recent Bitcoin purchase cost, and how many BTC did they acquire?

AMicroStrategy's most recent purchase acquired 1,229 BTC at a cost of approximately $109 million.

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