Noted economist Peter Schiff on Thursday said Strategy’s Bitcoin-heavy strategy is a “bigger Ponzi” than Bitcoin itself, arguing that the company’s stock will collapse before the cryptocurrency does.
Speaking in an interview with Yellow.com on the sidelines of Binance blockchain week, Schiff said the market is overlooking what he sees as greater structural risk in Michael Saylor’s company compared to the asset it has accumulated.
Asked about Bitcoin’s investment case compared with gold, Schiff dismissed the idea that the cryptocurrency functions as a hedge. He described Bitcoin as “digital fiat,” a token “backed by nothing” whose value depends entirely on confidence and belief. According to Schiff, scarcity does not make it equivalent to precious metals and reiterated that Bitcoin buyers are not investing, but “gambling” on price appreciation.
But Schiff directed his strongest criticism at Strategy.
“Strategy is a Ponzi scheme,” he said. “Strategy is destined to collapse. The stock is going to zero before Bitcoin.” He added that in his view, “Strategy is a bigger fraud than Bitcoin itself,” and went so far as to say, “I’d rather own Bitcoin than Strategy stock.”
Schiff argued that Strategy’s business has become inseparable from Bitcoin speculation, and that long-term holders of the stock face more immediate risk than holders of the cryptocurrency itself.
He claimed the company’s market value relies on expectations of continued Bitcoin gains and inflows from investors who “just got hyped into it.”
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He also warned that a broad unwinding of Bitcoin positions could accelerate pressure on MicroStrategy’s equity.
Schiff predicted that ETF investors and leveraged buyers would exit faster than new money could enter, saying there is “not enough liquidity” to absorb a wave of selling.
He argued that early Bitcoin holders have already used ETF-driven demand to offload large positions, leaving “the gullible public” exposed to future declines.
Schiff maintained that both Bitcoin and Strategy would face eventual collapse, but said the company’s dependence on the asset makes it more vulnerable than the asset itself.
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