Peter Schiff accused Michael Saylor of “committing fraud.”
Schiff argued Strategy’s recent Bitcoin sales could accelerate a market downturn.
Grayscale disagreed with Schiff’s bearish view.
Bitcoin critic Peter Schiff said Strategy’s recent decision to begin selling portions of its Bitcoin holdings could mark a major shift for both the company and the broader crypto market.
Speaking on the Crowded Market Report podcast, Schiff argued that Michael Saylor’s company had gone from being Bitcoin’s largest corporate buyer to becoming a potential source of sustained selling pressure.
Schiff also predicted increasing outflows from spot Bitcoin exchange-traded funds, arguing speculative investors were losing patience.
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
Peter Schiff Accuses Michael Saylor of ‘Committing Fraud’
Schiff also accused Strategy Executive Chairman Michael Saylor of making misleading statements about the company’s Bitcoin strategy, alleging the executive could face legal action.
“I’ve accused him of fraud. He hasn’t sued me for defamation,” Schiff said.
Adding: “I think he’s committing fraud.”
Schiff alleged Saylor had exaggerated the potential benefits of investing in Strategy while understating the associated risks.
“He’s made so many material and false representations that exaggerate the upside potential and minimize the risk.”
He added that because Strategy is a publicly traded company, he believes securities laws could eventually become relevant.
“These are security laws that come into play with what Saylor says. So I think there’s a lot of exposure there.”
Strategy has not publicly responded to Schiff’s latest allegations.
Peter Schiff Warns Strategy Sales Could Help Trigger Bitcoin Decline
Schiff argued that any future legal liabilities could ultimately force Strategy to liquidate additional Bitcoin holdings, creating further downward pressure on the crypto.
“I think Strategy has a lot of Bitcoin they need to sell.”
He continued:
“Strategy is going to have to pay billions of dollars to settle lawsuits… Where is it going to get the money to make those payments? They’re going to have to sell Bitcoin.”
According to Schiff, falling Bitcoin prices could worsen the situation by requiring the company to dispose of even more coins.
“The lower the price of Bitcoin, the more Bitcoin they have to sell to get the money they need.”
Schiff said that he believed Strategy was the “big buyer propping up the market, now they’re a seller.”
“I don’t think investors really appreciate how big this is going to be,” he added.
Strategy Sells $216 Million in Bitcoin to Bolster Cash Reserves
Strategy disclosed on Monday that it sold 3,588 Bitcoin between June 29 and July 5, raising approximately $216 million to strengthen its cash position.
The company said it now holds 843,775 Bitcoin alongside approximately $2.55 billion in cash reserves.
The sale follows a much smaller disposal of 32 Bitcoin in late May, marking the second time in recent weeks that Strategy has reduced its Bitcoin holdings.
According to the company’s SEC filing, part of the Bitcoin was sold below Strategy’s average acquisition cost.
Grayscale Says Sales Could Ultimately Support Bitcoin
Grayscale Research took the opposite view, arguing that Strategy’s willingness to sell Bitcoin to maintain adequate liquidity should improve investor confidence.
Grayscale Head of Research Zach Pandl said the company’s updated capital allocation framework addresses growing concerns surrounding its financing model.
“Recent actions by Strategy… should restore market confidence over its financing structure and, in our view, may help Bitcoin’s price find a more durable bottom,” Pandl wrote.
Pandl noted that Strategy continues to hold roughly $52 billion, equivalent to roughly 17 months of preferred dividend coverage.
Strategy’s Bitcoin Buying Streak Failed to Deliver Returns, Says Schiff
Schiff also argued that Strategy’s multi-year accumulation strategy had failed to generate meaningful returns despite years of continuous Bitcoin purchases.
“Strategy has put $60 billion dollar-cost averaging, buying every week almost for the past five years, and he’s down $14 billion.”
In classic Schiff fashion, the gold advocate argued the better returns if Saylor had invested in precious metals.
“He could have bought gold or silver. He could have bought the S&P 500. He could have just bought a money market and he’d be better off,” Schiff said.
Schiff further argued that Bitcoin’s performance has disappointed relative to expectations following years of bullish price forecasts.
“Nobody a couple of years ago was saying, ‘Yeah, I think Bitcoin will be about $50,000 or $60,000.’ It was all pie-in-the-sky hype.”
At the time of reporting, Bitcoin’s price was trading at $63,736, up 8% in the last week.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
