Peter Schiff Warns Against Bitcoin Holding Firms and Mocks Saylor’s Strategy

Highlights:

• Peter Schiff called buying shares in Bitcoin-only firms a “ridiculous” way to gain crypto exposure.
• He said Bitcoin’s real use is to protect against risks from MicroStrategy’s stock.
• Businesses lead Bitcoin buying this year, with MicroStrategy making up 77% of growth.

In a recent X post, gold advocate and crypto critic Peter Schiff called buying shares in Bitcoin-only companies a “ridiculous” way to get crypto exposure. He said people should buy Bitcoin directly if they want it. He also advised that investors should pick companies with real businesses.

Bitcoin Companies Face Mixed Views on Value and Risks

Pierre Rochard, CEO of The Bitcoin Bond Company and ex-Vice President at Riot Platforms, defended this practice. He said Bitcoin-focused companies can provide real value to many market participants. “Tranching up bitcoin’s risk-return is a real business. Some people want less volatility, others want more,” Rochard commented. “Financial engineering with securitization creates real value.”

A UK market participant also highlighted that retirement accounts often cannot have direct Bitcoin exposure. This is especially true in the UK, where Bitcoin Exchange-Traded Funds (ETFs) are less accessible.

Not always possible to get exposure to Bitcoin directly in retirement funds, particulary here in the UK where we don't have access to the Bitcoin ETFs. Bitcoin treasury stocks are the easiest way to get exposure on digital gold, while avoiding regulatory red-tape.

— AssetMarketCap (@AssetMarketCap) May 14, 2025

However, critics label these firms as “this cycle’s shitcoins.” On May 13, investor Stack Hodler issued a warning about Bitcoin treasury companies. He said they create shares out of thin air to attract investors but offer no real value. The analyst said many of these companies may have to sell their Bitcoin later. He added that only businesses creating value with products and services will support Bitcoin’s long-term worth.

According to a recent report from River, businesses are the biggest buyers of BTC this year. MicroStrategy leads, making up 77% of corporate Bitcoin growth. The report revealed that businesses bought 157,000 BTC, governments bought 19,000 BTC, and funds and ETFs added 49,000 BTC. Meanwhile, individual investors sold about 247,000 BTC.

Businesses are the largest net buyer of bitcoin so far this year, lead by @Strategy which makes up 77% of the growth. pic.twitter.com/Bbj89gyk2h

— River (@River) May 12, 2025

Peter Schiff Makes Fun of Michael Saylor’s BTC Strategy

In another post on Wednesday, Peter Schiff said Bitcoin might be useful, but not in the way fans expect. He mentioned Jim Chanos, who bought BTC to protect his bet against MicroStrategy stock. In a post on X, Chanos said investors pay too much for Bitcoin exposure through MicroStrategy. He explained that MSTR stock trades at a much higher price than the value of its Bitcoin holdings. Chanos’s plan is that if MSTR stock goes down, his Bitcoin will help protect him from losing too much money.

Wow, people get very upset when you point out they are buying $1 for $3. (And doing exactly what their favorite company is doing!) $MSTR

— James Chanos (@RealJimChanos) May 14, 2025

MicroStrategy, led by Executive Chairman Michael Saylor, has kept buying more Bitcoin. The company now owns nearly 570,000 BTC. Some people see MSTR as a way to invest in Bitcoin but with extra company risk. Schiff made fun of this, saying Saylor “accidentally created a real use case for Bitcoin.” He explained investors use Bitcoin to protect themselves from risks linked to Saylor’s company. Schiff said MicroStrategy is no longer a software company but mainly holds Bitcoin.

I've often said there's no actual use case for Bitcoin. It turns out I was wrong. @RealJimChanos found a valid reason to own Bitcoin. He bought it to hedge his short position in $MSTR. So @Saylor has ironically created a use case for Bitcoin, just not the use case he had in mind.

— Peter Schiff (@PeterSchiff) May 14, 2025