Longtime Bitcoin (CRYPTO: BTC) critic Peter Schiff on Monday said Michael Saylor's Bitcoin strategy has delivered less than 15% in unrealized gains, even as company leadership doubled down on a bullish outlook for 2026.
Schiff Questions Bitcoin-Heavy Balance Sheet
Peter Schiff criticized Saylor in a post on X, saying Strategy's (NASDAQ:MSTR) debt-funded Bitcoin purchases have lagged returns from “any other asset.”
He said Strategy's average Bitcoin cost near $75,000 leaves the company with modest gains despite years of accumulation.
The comments came as Bitcoin trades range-bound through December, pressuring companies whose equity valuations are closely tied to cryptocurrency prices.
Strategy's stock is down about 63% from its July high, reflecting both Bitcoin's pullback and investor concerns over leverage.
Management Defends Long-Term Bitcoin Thesis
Despite the criticism, Strategy executives remain confident.
CEO Phong Le said Bitcoin represents a unique asset class and predicted stronger demand in 2026, driven by bank adoption and increased nation-state participation.
Speaking on Fox Business, Le said the firm is structured to outperform Bitcoin over time because of its leveraged exposure.
According to a recent filing with the SEC, Strategy holds 671,268 Bitcoin acquired at an average price of $74,972.
The company added roughly $980 million worth of Bitcoin yesterday, at prices near $92,000 per coin.
Stock Trades Below Value Of Bitcoin Holdings
Strategy's market capitalization has fallen below the value of its Bitcoin holdings, a situation shared by several digital asset treasury companies.
The decline has coincided with Bitcoin remaining about 30% below its October peak, trading mostly between $85,000 and $95,000 in December.
To manage downside risk, Strategy recently created a $1.4 billion cash reserve funded through stock sales.
Management said the buffer is designed to cover dividend and interest obligations for nearly two years and reduce the risk of forced Bitcoin sales during periods of market stress.
Market Volatility Adds Pressure
Bitcoin dipped below $86,000 on Tuesday, triggering roughly $582 million in liquidations of leveraged long positions, according to Coinglass data.
U.S. spot Bitcoin ETFs also saw heavy selling, with about $358 million in net outflows on Monday, per DefiLlama.
Some market participants described the environment as cautious.
Transform Ventures CEO Michael Terpin said the market is facing a shortage of buyers alongside growing nervousness among sellers, underscoring the fragile sentiment around digital assets.
What's Next For MSTR
MSTR Price Forecast (Source: TradingView)
MSTR suffered a sharp selloff on Monday, closing over 8% lower after losing trend support.
The stock is trading well below all major moving averages, which confirms a strong bearish trend.
Every recent bounce has failed near the upper channel line, meaning rallies are being sold quickly.
Tuesday's 2% pre-market bounce looks like a technical relief move, not a trend reversal.
As long as price stays below $180–$190, downside risk remains.
If selling resumes, the next downside zone sits near $150–$145.
A real trend shift would require a daily close back above the falling channel and reclaiming $200+.
What's Next For Bitcoin
BTC Price Dynamics (Source: TradingView)
BTC bounced again from the $84,000–$85,000 zone, which is acting as short-term support.
Even with today's green candle, Bitcoin remains below Supertrend and key resistance, meaning the broader trend is still weak.
As long as BTC stays below $96,000, sellers still control the structure.
If support near $85,000 breaks, downside risk opens toward $80,000.
A bullish shift would need a clean move back above $96,000 with follow-through.
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