Editor's Note: The spelling of Michael Saylor’s name has been corrected in the headline.

Financial market commentator Peter Schiff on Tuesday criticized Michael Saylor’s comparison of MicroStrategy Inc.‘s (NASDAQ:MSTR) debt-financed Bitcoin (CRYPTO: BTC) buying strategy to Manhattan real estate.

What Happened: In an X post, Schiff disagreed with Saylor’s analogy. “Real estate generates rents, which can be used to service and repay debt. Bitcoin doesn’t generate any income to make interest or principal payments,” he argued.

Spencer Hakimian, founder of hedge fund Tolou Capital Management, countered Schiff’s viewpoint, stating that, unlike the Manhattan real estate industry, Bitcoin doesn’t have any expenses or maintenance.

Schiff responded that rents from real estate exceed the expenses.

See Also: MoonPay Partners With Element Wallet To Boost Core Token Access In BTCfi Ecosystem

Schiff’s critique adds to the ongoing debate around MicroStrategy’s Bitcoin strategy. Earlier, he warned that the company's commitment to repay a large sum of money to convertible note holders could be a potential risk if the price of Bitcoin falls sharply.

Well-known cryptocurrency analyst Willy Woo also flagged the risk associated with the firm’s convertible debt offerings, stating that if buyers do not convert to shares before maturity, MicroStrategy would be forced to sell Bitcoin to repay them.

Price Action:  At the time of writing, Bitcoin was exchanging hands at $105,351.94, down 0.86% in the last 24 hours, according to data from Benzinga Pro.

Shares of MicroStrategy closed 5.41% lower at $ 386.42 during Tuesday’s regular session. The stock has a consensus price target of $449.5 based on the ratings of 12 analysts, with an average price target of $546.67 between Bernstein, TD Cowen, and Barclays.

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Image via Flickr/ Gage Skidmore