No one

bullish

Bitcoin

when

Billion

While some institutional investors, like MicroStrategy, are taking advantage of the bullish sentiment in the crypto market to boost their Bitcoin (BTC) bags, Peter Schiff is busy pointing out what could go wrong.
On November 11, the business intelligence and software company announced that it had purchased 27,200 Bitcoin units for approximately $2.03 billion in cash.
<h2 class="wp-block-heading" id="strong-peter-schiff-s-perception-of-microstrategy-and-bitcoin-strong">Peter Schiff’s Perception of MicroStrategy and Bitcoin</h2>
Schiff highlighted that MicroStrategy&nbsp;<a href="https://www.thecoinrepublic.com/2024/09/21/microstrategy-buys-more-bitcoin-after-raising-1-01-billion-in-debt-offering/" rel="noopener noreferrer nofollow">borrows money</a>&nbsp;and issues shares to acquire BTC. He is positive that this move may cause the price of Bitcoin to soar and that it might trigger an MSTR price increase.
The Bitcoin critic said this trend will push the firm to borrow more money and repeat the cycle. He tagged the process a “Wash, rinse, repeat” cycle. Schiff ended his X post with a question: “What could possibly go wrong?”
In his follow-up post, Schiff based his negative projection on the&nbsp;<a href="https://www.thecoinrepublic.com/2024/09/11/peter-schiff-shares-grim-warning-on-bitcoin-supply-demand/" rel="noopener noreferrer nofollow">imminent fall of Bitcoin</a>. To put this in perspective, he thinks investors buying MSTR convertible senior notes are bound for disgrace when Bitcoin crashes. As usual, many of his audience called his bluff, with some referring to previous months when he predicted BTC’s “close” downfall.
One Alex Thorn on X advised Schiff to use some of his Non-fungible token (NFT) money to buy Bitcoin. Notably, the critic once launched an NFT series for which he even collected payment in Bitcoin.
<h2 class="wp-block-heading" id="strong-microstrategy-remains-glued-to-its-btc-strategy-strong">MicroStrategy Remains Glued to its BTC Strategy</h2>
For the recent MicroStrategy $2 billion buy, each BTC came at an average price of $74,463 per BTC, including fees and expenses. The Michael Saylor-led firm said it acquired the BTC between October 31, 2024, and November 10, 2024. The firm completed the purchases using proceeds from issuing and selling shares.
As of November 10, MicroStrategy held a total of 279,420&nbsp;BTC. At the time of writing, the&nbsp;<a href="https://www.thecoinrepublic.com/price-prediction/bitcoin/" rel="noopener noreferrer nofollow">BTC price</a>&nbsp;was $89,429.15, up 2.68% in 24 hours.
So far, its 2020 BTC purchases are worth approximately $11.9 billion, at an average purchase price of approximately $42,692. At the current price of $86,819.41, MicroStrategy’s BTC holding is valued at $24.26 billion. This suggests that the company has profited more than 100% from its consistent Bitcoin purchases.
With such a track record, MicroStrategy will likely continue this BTC accumulation spree for a while. In line with its success, it has encouraged Metaplanet to invest in the coin.
<h2 class="wp-block-heading" id="strong-peter-schiff-on-btc-price-going-to-0-strong">Peter Schiff on BTC Price Going to $0</h2>
By asking what could go wrong, Peter Schiff is probably looking forward to the day when Bitcoin tanks to $0. Will that day ever come? No one can say for sure, but the BTC critic has also predicted this outcome.
However, the present reality is that Bitcoin is surging and gaining more traction even from institutional investors. Notably, some investors may be forced to consider Schiff’s perception and eventually take their profit out of the market.
If they refuse to sell, the HODLers may be lucky to grab more gains in the coming days. Last week, the “Percentage of Addresses in Profit vs. Loss” chart for BTC indicated that&nbsp;<a href="https://www.thecoinrepublic.com/2024/11/08/99-99-of-all-bitcoin-addresses-in-profit-what-it-actually-means-for-btc/" rel="noopener noreferrer nofollow">nearly all addresses were profitable</a>&nbsp;at the time. This coin outlook is a rare occurrence, and it is historically associated with local market tops. This may still happen again if Bitcoin sustains its recent rally.
The post <a href="https://www.thecoinrepublic.com/2024/11/13/peter-schiff-slams-microstrategys-new-2-billion-bitcoin-bet/" rel="noopener noreferrer nofollow">Peter Schiff Slams MicroStrategy’s New $2 Billion Bitcoin Bet</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.

Peter Schiff Slams MicroStrategy’s New $2 Billion Bitcoin Bet

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