Just 16% Profit? Peter Schiff Questions Strategy’s Billion-Dollar Bitcoin Investment

Michael Saylor’s Strategy, previously known for MicroStrategy, maintains its commitment to accumulating Bitcoin, strengthening its role as the leading public company holding BTC. Meanwhile, Tom Lee’s BitMine Technologies is making strides in the Ethereum sector, asserting its position among public companies with significant ETH reserves.

Key Takeaways

Strategy recently bought an additional 1,229 BTC, increasing its total holdings to 672,497 BTC valued at around $50.44 billion.
Despite a healthy reported yield of 23.2% for Strategy YTD 2025, Peter Schiff argues that a 16% total profit over five years is underwhelming compared to traditional investments.
Tom Lee’s BitMine has expanded its Ethereum holdings, recently acquiring 44,463 ETH, bringing total Ether tokens held to over 4 million valued at $12.02 billion.
The contrasting investment approaches of Strategy and BitMine illustrate the diverse strategies within the institutional crypto space.

Peter Schiff Questions Strategy’s Multi-Billion Bitcoin Holdings

Last week, Strategy made headlines by purchasing 1,229 BTC for approximately $108.8 million, at an average price of $88,568 per coin. This acquisition has raised the company's total Bitcoin holdings to 672,497 BTC, which were obtained at an average cost of $74,997 per Bitcoin. The total value of these holdings is estimated at around $50.44 billion.

In the latest update from Strategy, they reported a Bitcoin yield of 23.2% year-to-date for 2025, indicating an unrealized profit of around $8.31 billion. However, Peter Schiff, a well-known investor and advocate for gold, expressed skepticism regarding these figures. He pointed out that a 16% profit over five years averages out to just over 3% annually, a return he considers disappointing when compared to conventional asset classes.

In Schiff's words, “MSTR would have been much better off had Saylor bought just about any other asset instead of Bitcoin,” suggesting a preference for more traditional investment opportunities. Although Schiff is critical of the efficiency of Strategy’s Bitcoin strategy, it reflects a wider trend of institutional investment in the cryptocurrency market.

MicroStrategy's steadfast buy-and-hold strategy illustrates a strong belief in Bitcoin's potential as a stable store of value, regardless of ongoing discussions about opportunity costs and realized returns.

Tom Lee’s BitMine Advances Toward 'Alchemy of 5%' Ethereum Objective

In parallel to Strategy's actions regarding Bitcoin, Tom Lee’s BitMine Immersion (BMNR) is making notable progress within the Ethereum landscape. Last week, BitMine acquired an additional 44,463 ETH, which boosted its overall holdings to 4,110,525 Ether tokens, currently valued at $12.02 billion. This acquisition represents 3.41% of the entire ETH supply.

Moreover, BitMine holds a substantial 408,627 staked ETH, with plans for its MAVAN staking solution set to launch in the first quarter of 2026. The company’s total crypto, cash, and ‘moonshot’ investments have now reached $13.2 billion, including $1 billion in cash and $23 million in strategic investments.

With backing from prominent institutional investors, including Cathie Wood of ARK, Founders Fund, Pantera, Galaxy Digital, Kraken, and Tom Lee himself, BitMine has also emerged as a highly traded stock in the U.S. market, boasting an average daily trading volume of $980 million, ranking #47 out of 5,704 listed stocks.

The different strategies employed by Strategy and BitMine highlight an ongoing discussion within the institutional crypto sector. While Strategy is focused on building its Bitcoin reserves, BitMine is rapidly expanding its Ethereum treasury and staking efforts.

The contrasting approaches reflect growing institutional confidence in digital assets. However, Schiff's critiques illustrate the ongoing debate between a long-term holding strategy and evaluating investment efficiency. BitMine will host its Annual Stockholder Meeting at the Wynn Las Vegas on January 15, 2026, to discuss key proposals tied to its “Alchemy of 5%” strategic plan for Ethereum. Meanwhile, Strategy remains committed to quietly growing its Bitcoin holdings, securing its status as the largest BTC treasury in the world, even amidst potential challenges such as MSCI exclusion risks.