Gold advocate and long-time Bitcoin critic Peter Schiff has intensified his attacks on the crypto sector, this time targeting Strategy’s business model. On Sunday, Schiff called the company’s approach a “fraud” and publicly challenged founder Michael Saylor to a debate. Schiff also issued a separate challenge to Binance co-founder Changpeng Zhao (CZ), proposing a debate at Binance Blockchain Week in Dubai this December.
In a post on X, Schiff argued that Strategy’s business structure relies on income-focused funds buying its preferred shares, which carry high advertised yields. He claimed those yields will “never actually be paid,” warning that once fund managers recognize this, they will dump the preferred shares, leaving Strategy unable to issue further debt and sending the company into what he described as a “death spiral.”
Schiff’s remarks come during a sharp downturn in the crypto market. Bitcoin slid below $99,000, while the broader crypto-treasury sector weakened. At the same time, gold reclaimed levels above $4,000 per ounce, strengthening Schiff’s long-standing argument in favor of precious metals.
Bitcoin and Strategy Struggle as Gold Holds Firm
Bitcoin is now down more than 20% from its October all-time high above $125,000. That peak came just days before the October 10 flash crash, which erased tens of billions in market value.
Strategy’s own metrics reflect the pressure. Its monetary premium — or mNAV, measuring how far the stock trades above its underlying Bitcoin holdings — briefly fell below 1 in November. It has since recovered to 1.21, but analysts consider a healthy mNAV for a Bitcoin treasury firm to be 2 or higher. Strategy’s stock price has dropped more than 50% since July and currently trades near $199.
Meanwhile, gold continues to hold its ground. After briefly dipping below the $4,000 support zone, the metal has rebounded to around $4,085 per ounce. Gold hit an all-time high of roughly $4,380 in October, pushing its market capitalization above $30 trillion before easing back to current levels.
