On Thursday, influential economist Peter Schiff took a swipe at MicroStrategy Inc.(NASDAQ:MSTR) CEO Michael Saylor's $42 billion Bitcoin (CRYPTO: BTC) investment strategy, likening it to a market trap.
What Happened: Schiff took to X, formerly Twitter, and compared Saylor to "the Egg Man" in a metaphorical critique of his Bitcoin investment plans.
Schiff used an egg futures analogy to express his concerns about Saylor's strategy. He suggested that MicroStrategy could end up holding a large amount of Bitcoin with no potential buyers, should the market turn.
"Sell to whom, you're the egg man!" Schiff concluded, implying that Saylor's aggressive Bitcoin buying could potentially trap the company in a volatile market.
Michael Saylor is the Egg Man. His latest announcement is that $MSTR will spend another $42 billion to buy #Bitcoin, funded by issuing $21 billion in debt and $21 billion in equity over the next three years. This reminds me of a joke I heard a long time ago.
— Peter Schiff (@PeterSchiff) October 31, 2024
A client calls his...
Why It Matters: Saylor's Bitcoin strategy has been a hot topic in the financial world. Last month, he announced that MicroStrategy plans to invest an additional $42 billion in Bitcoin over the next three years, funded by issuing $21 billion in debt and $21 billion in equity.
Other companies like Coinbase Global Inc. (NASDAQ:COIN) have also shown interest in expanding their cryptocurrency investment portfolios.
Coinbase CFO Alesia Haas on Thursday said that the company holds a cryptocurrency investment portfolio on its balance sheet, valued at approximately $1.3 billion at the close of the third quarter.
This portfolio represented close to 25% of Coinbase's total cash reserves.
Meanwhile, Bitcoin ETFs are edging closer to becoming the largest collective holder of Bitcoin, potentially surpassing Satoshi Nakamoto's legendary holdings.
Price Action: On Thursday, MicroStrategy shares ended the day 1.1% lower at $244.50 and gained 0.7% in the after-hours trading. Bitcoin was seen trading 4.1% lower at $69,321.65, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
