Prominent Bitcoin critic and gold advocate Peter Schiff has renewed his attacks on MicroStrategy's aggressive Bitcoin accumulation strategy, seizing on the company's recent paper losses as fresh ammunition. MicroStrategy, led by executive chairman Michael Saylor, purchased 855 Bitcoin for $75.3 million in late January/early February 2026, paying an average price of $88,000 per coin.
Shortly after this purchase, Bitcoin's price experienced a sharp decline, falling below $80,000 and reaching as low as $72,945. This selloff, which saw Bitcoin drop approximately 15% in the first four days of February, pushed MicroStrategy's entire Bitcoin position underwater for the first time since the company began accumulating the cryptocurrency in August 2020. The company is now roughly $630 million underwater on its holdings, erasing about $47 billion in unrealized gains that had accumulated just four months prior.
MicroStrategy currently holds over 713,000 Bitcoin with an average cost basis of $76,037 per coin. Schiff argues that the limited buffer between the company's acquisition price and current market value makes it highly vulnerable to volatility. "According to @Saylor, Bitcoin is the best performing asset in the world. Yet $MSTR invested over $54 billion in Bitcoin over the past five years, and as of now the company is down about 3% on that investment. I'm sure the losses over the next five years will be much greater!" Schiff posted on X.
Schiff further contends that MicroStrategy's aggressive buying was a primary driver of Bitcoin's 550% price rise since 2020, and that the company's reduced purchasing power is now contributing to price declines. "If Bitcoin ever bottoms, it won't be until after MicroStrategy sells its last satoshi," he warned, suggesting the unwind has begun.
Michael Saylor remains defiant, doubling down on his Bitcoin-maximalist stance. As prices slid, he posted on social media: "The Rules of Bitcoin: 1. Buy Bitcoin 2. Don't Sell the Bitcoin." Speaking at the Bitcoin MENA conference in December 2025, Saylor framed MicroStrategy not as a concentrated risk but as a gateway for mass adoption, claiming the company has already provided Bitcoin exposure to around 50 million people through pension funds, insurance companies, sovereign wealth funds, and retail accounts.
Saylor argues that corporate participation is essential to Bitcoin's long-term valuation growth, suggesting that without it, Bitcoin would languish near $10,000. He believes MicroStrategy's actions have added $1.8 trillion to Bitcoin's market value, with gains flowing predominantly to holders outside corporate ownership.
