Peter Schiff: Strategy’s Bitcoin Bet Ranks as 6th Worst-Performing Stock in S&P 500 for 2025

Summary: Economist Peter Schiff has again raised concerns about companies heavily invested in Bitcoin, focusing on Strategy's recent stock performance, which he claims has worsened shareholder value. Schiff argues that this reliance on Bitcoin exposes firms to undue risk during market downturns.

Key Takeaways

Economists like Peter Schiff criticize firms tying their success to Bitcoin.
Strategy's stock is down approximately 47.5% in 2025, potentially ranking it among the weakest S&P 500 stocks.
Bitcoin's volatility poses risks, especially during market declines, as highlighted by Schiff's analysis of Strategy's performance.
Strategy recently acquired over 1,200 additional Bitcoins, bringing its total holdings to around 672,497 coins.
Critics argue that corporate Bitcoin investments may not yield better returns compared to traditional assets.

Saylor CEO of MicroStrategy

The Risks of Bitcoin Dependence

Peter Schiff has expressed strong disapproval of companies that heavily rely on Bitcoin, with a specific focus on Strategy. He argues that the company's significant investment in Bitcoin can diminish shareholder value during bearish market phases.

Analyzing Strategy's Market Position

Schiff supported his critique by comparing Strategy's stock performance to the broader U.S. equity market. He noted that the company’s shares have fallen about 47.5% year-to-date in 2025, a decline that, if included in the S&P 500, would place it among the lowest performers. Though not part of this benchmark index, Schiff believes this comparison emphasizes the dangers of relying too much on Bitcoin for a company's financial health.

Questioning Investment Strategies

Additionally, Schiff suggested that this downturn challenges Michael Saylor’s investment strategy. As Strategy’s executive chairman, Saylor has long advocated for Bitcoin as a key asset for corporate treasury. However, Schiff contended that the company has essentially redefined its identity around Bitcoin, increasing shareholder risk during negative market conditions.

He drew attention to 2025, showcasing the performance of Bitcoin-focused strategies amid market drops. Schiff believes that decreasing cryptocurrency prices strip away any perceived safety these strategies may offer, while leverage can exacerbate losses when the market declines.

Strategy's Recent Bitcoin Acquisition

Schiff’s criticism came after Strategy announced the purchase of an additional 1,229 Bitcoins, amounting to roughly $108.8 million, with an average cost of about $88,568 per coin. Post-transaction, Strategy amassed a total of 672,497 Bitcoins, acquired at an average cost of approximately $74,997 each. At current market values, these holdings are approximately worth $50.44 billion, with a reported Bitcoin yield of 23.2% year-to-date in 2025.

Profit Performance Under the Microscope

Despite Strategy’s report of an unrealized gain of about $8.31 billion on its Bitcoin holdings, Schiff cast doubt on its significance. He pointed out that this gain reflects roughly a 16% increase over five years, translating to just over 3% annually—considered by Schiff as a disappointing return compared to traditional investment options.

He concluded that the company might have performed more successfully by investing in alternative assets. This debate has rekindled discussions about the merits of Bitcoin in corporate finance. Supporters argue that Bitcoin offers long-term advantages and diversification, whereas critics maintain that it brings unnecessary volatility. Ultimately, Strategy's performance in 2025 has become a central topic in this ongoing discourse.

Disclaimer: This article is for informational purposes only and should not be taken as financial advice. The opinions expressed reflect those of the author and do not necessarily represent the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making financial decisions. The Crypto Basic is not liable for any financial losses.