Renowned economist Peter Schiff predicted on Wednesday that Strategy Inc. (NASDAQ:MSTR) shares will halve to $80 from the current $160, while setting a $50,000 downside target for Bitcoin (CRYPTO: BTC).
Schiff Predicts Bloodbath For MSTR, Bitcoin
In an X post, Schiff expressed his bearish outlook on the world’s largest Bitcoin holding company.
“It's hard to find a chart that looks worse than Strategy’s MSTR,” Schiff said. “At a minimum, the stock should drop to about $80, which is half its current price.”
Schiff also set $50,000 as Bitcoin’s “minimum target,” warning that MSTR’s drop won’t occur unless the leading cryptocurrency experiences a major decline first.
For context, Bitcoin traded at these levels back in Feb. 2024.
What’s Next For MSTR?
Schiff has been highly critical of Strategy’s investment approach, particularly its aggressive purchases of Bitcoin. He has questioned why the company continues to buy Bitcoin when its shares are worth less than the BTC holdings.
As of this writing, momentum-based technical indicators and moving averages suggested a “Sell” for the MSTR stock, according to TradingView.
Strategy didn’t immediately return Benzinga’s request for comment on Schiff’s predictions.
Saylor’s Bitcoin Bet Under Pressure?
Strategy, often seen as a leveraged play on Bitcoin, has struggled lately, with its market value of $49.01 billion sinking lower than the value of its BTC holdings, which amount to $58.17 billion. The stock has tumbled 57% in the last six months, outpacing Bitcoin's 17% decline.
Notably, the company announced a $1.44 billion reserve earlier this month, aimed at funding dividends and interest without relying on Bitcoin sales during downturns.
Executive Chairman Michael Saylor said that the firm could sell its Bitcoin in the “best interest of shareholders.”
However, the challenges haven’t slowed down Strategy’s Bitcoin purchases. Earlier this week, the company reported a purchase of 10,645 BTC for $980.3 million, boosting its total holdings to 671,268 BTC.
Price Action: At the time of writing, BTC was exchanging hands at $86,205.44, down 1.26% in the last 24 hours, according to data from Benzinga Pro.
Strategy shares rose 0.10% in after-hours trading to $160.54. The stock closed 4.25% lower at $160.38 during Wednesday’s regular trading session.
The stock maintains a weaker price trend over the short, medium and long terms. How does it compare with other Bitcoin treasury equities? Visit Benzinga Edge Stock Rankings to find out.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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