Analysts Refute Peter Schiff’s “MSTR Will Go Bankrupt” Thesis
The post Analysts Refute Peter Schiff’s “MSTR Will Go Bankrupt” Thesis appeared com. Schiff claims MSTR’s debt-driven Bitcoin strategy risks eventual insolvency. BitOrdi and Schiff dispute whether convertible notes mirror a sustainable business model. Jeff Dorman argues MSTR faces no forced-selling risk and remains structurally stable. A public dispute over MicroStrategy’s (MSTR) long-running Bitcoin accumulation strategy widened after economist Peter Schiff accused the company and its executive chairman, Michael Saylor, of operating on an unsustainable model. Schiff, a noted Bitcoin skeptic, argued that MSTR’s debt-fueled approach exposes the firm to eventual insolvency. His comments sparked a wide range of responses from market analysts, who rejected the assertion and challenged his interpretation of the company’s debt structure and risk exposure. Related: MicroStrategy’s Historic Outperformance Reverses as MSTR Trails Bitcoin in 2025 Schiff Renews “Fraud” Claim, Challenges Saylor to Debate Schiff stated that MSTR’s business model is “a fraud” and asserted that the firm would “eventually go bankrupt,” adding that he is willing to debate Saylor at Binance Blockchain Week in Dubai. He framed his criticism around MSTR’s reliance on capital raises that, in his view, repeat the same cycle of issuing debt to acquire more Bitcoin. MSTR’s entire business model is a fraud. Saylor and I will both be speaking at Binance Blockchain Week in Dubai in early December. I challenge @saylor to debate this proposition with me. Regardless of what happens to Bitcoin, I believe STR will eventually go bankrupt. Let’s go! Peter Schiff (@PeterSchiff) November 16, 2025 In response to Schiff’s post, commentator BitOrdi argued that this pattern mirrors how a company could theoretically raise funds to purchase an asset correlated to its strategic thesis repeatedly. He suggested this mechanism resembles MSTR’s use of proceeds from “Convertible Senior Notes.” Schiff rejected this comparison, stating that NEM, the example BitOrdi used, is a business generating operating earnings and dividends, which he said.
