**Gold Investor Peter Schiff Labels Strategy’s Business Model a “Fraud” and Challenges Michael Saylor to Debate in Dubai**
Gold advocate and seasoned investor Peter Schiff has escalated his criticism of Strategy’s business operations, calling its entire model a “fraud” in a social media post on Sunday. Schiff, known for his strong stance in favor of gold over cryptocurrencies, took to challenging Strategy founder Michael Saylor to a public debate. The proposed debate is scheduled to take place at Binance Blockchain Week in Dubai, United Arab Emirates, this December. Additionally, Schiff extended a separate challenge to Binance co-founder Changpeng Zhao to participate in the same event.
His attacks come amid heightened downward pressure on Bitcoin, which has experienced significant market turbulence recently. Schiff argues that Strategy’s business model relies heavily on income-oriented funds purchasing its high-yield preferred shares. He claims these proposed yields are unlikely to be paid out in reality. Schiff warns that once fund managers realize this, they will start selling off the preferred shares, leading to a “death spiral” for Strategy. Such a scenario would make it increasingly difficult for the company to issue new debt, potentially accelerating its decline.
**Bitcoin’s Volatility and Strategy’s Stock Performance**
Bitcoin has fallen below the $99,000 mark recently, marking a decline of over 20% from its all-time high above $125,000 reached in October. The market experienced a significant flash crash on October 10, wiping tens of billions of dollars in value from the crypto sector. Currently, Bitcoin trades around $95,000, reflecting the ongoing volatility.
Strategy’s stock has also suffered substantial declines, dropping over 50% since July and now trading at approximately $199. Its mNAV (multiple on net asset value), which measures the premium over its underlying Bitcoin holdings, fell below 1 in November—a concerning sign for investors. Although it has since rebounded to 1.21, investors generally consider a healthy mNAV to be 2 or higher, indicating that the current market sentiment remains cautious.
**Michael Saylor’s Continued Confidence and Bitcoin Holdings**
Despite these challenges, Michael Saylor has hinted at further Bitcoin acquisitions. On social media, he posted a “Big Week” message accompanied by a portfolio chart indicating Strategy currently holds around 641,692 BTC. Based on recent Bitcoin prices, these holdings are valued at over $61 billion.
Strategy reportedly acquired its Bitcoin at an average cost near $74,000 per coin, and Saylor remains optimistic about future purchases. His willingness to accumulate more Bitcoin amidst market downturns underscores his firm belief in digital assets’ long-term potential.
**Gold Market Remains Resilient**
In contrast to cryptocurrencies, gold has maintained relatively stable pricing above $4,000 per ounce. It’s currently trading at approximately $4,085 per ounce. Gold experienced a brief dip below the $4,000 threshold but quickly recovered, reaching an all-time high of around $4,380 per ounce in October. At that peak, gold’s market capitalization surpassed $30 trillion.
Though there has been some retracement, gold remains a safe haven amid cryptocurrency market turbulence. Market analysts continue to monitor its performance as a stabilizing asset class.
**Market Insights and Future Outlook**
CryptoQuant analyst Maartunn has suggested that Strategy may announce another Bitcoin purchase soon, based on on-chain accumulation data. Meanwhile, Bitwise CEO Hunter Horsley has warned that Bitcoin’s traditional four-year cycle might be shifting. He noted that early selling by traders anticipating a downturn in 2026 could be accelerating the decline into 2025, indicating a potential paradigm shift in the crypto market’s behavior.
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*Stay tuned for updates on this developing story as the debate approaches and market conditions continue to evolve.*
https://coincentral.com/peter-schiff-calls-strategys-bitcoin-model-a-fraud-challenges-michael-saylor-to-debate/