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Gold advocate and renowned economist Peter Schiff has suggested that MicroStrategy’s MSTR stock might eventually collapse. This development could be significant for Bitcoin 
$94,372, given the company’s substantial investments in the BTC ecosystem, along with co-founder Michael Saylor’s involvement.
Peter Schiff and the Future of MSTR
In his comments, Schiff indicated that MSTR shares may face a decline. According to the gold proponent, a collapse of MSTR could lead to severe repercussions. Indeed, MSTR’s downfall could negatively impact Bitcoin, as MicroStrategy currently ranks as the fifth largest holder of Bitcoin, only behind Satoshi Nakamoto, Binance, BlackRock, and Grayscale, with a total of 252,220 BTC.
Thus, if Schiff’s prediction of MSTR’s collapse materializes, the potential liquidation of its BTC assets could exert downward pressure on Bitcoin’s price. Holding more than 1% of Bitcoin’s total supply, the company poses a significant risk of selling pressure for BTC.
Michael Saylor States They Will Not Sell
Michael Saylor has repeatedly stated that they have no plans to sell their Bitcoin holdings. Why is this the case? Because MSTR shares trade similar to a leveraged BTC ETF. Prior to the spot ETF approval in January, MSTR was known as a proxy Bitcoin ETF and consistently traded at a premium based on total reserve assets.
Saylor also expressed that he no longer has concerns regarding the stock being oversold. The technology founder affirmed the company’s commitment to buying and holding Bitcoin, adding that trading shares is a decision for shareholders. The detail here is that most shareholders likely purchased shares to adopt an investment strategy resembling a BTC long position, creating distinct motivations compared to other stocks.
Schiff’s remarks about MSTR stem from the stock’s superior performance compared to all stocks in the S&P 500 and Bitcoin itself. Since adopting its Bitcoin strategy in August 2020, MicroStrategy’s stock has appreciated by over 1000%. Data from MarketWatch reveals that MSTR has outperformed other assets this year, gaining 249% year-to-date.
The future of Bitcoin continues to be shaped by the actions of large investors like MicroStrategy. Schiff’s predictions and Saylor’s statements may signal uncertainties in the crypto market. For investors, closely monitoring such developments could be beneficial in adjusting their strategies.
