Peter Schiff Calls MicroStrategy’s MSTR Stock a Scam and Saylor a Fraud

Peter Schiff has intensified his assault on Michael Saylor and Strategy, calling both the MSTR stock and STRC preferred equity scheme scams and comparing them to Nakamoto Games (NAKA), a cryptocurrency that collapsed 99% in the past year.

Schiff’s barrage of critiques comes as the Bitcoin conference season kicks off with renewed enthusiasm for digital credit instruments backed by Bitcoin holdings.

The NAKA Collapse Precedent

Schiff attended last year’s Las Vegas Bitcoin conference, where Nakamoto token (NAKA) generated massive hype and investor enthusiasm. Since then, the token’s price has collapsed by more than 99%, leaving investors who bought near the peak with devastating losses.

This year, Schiff argues, attendees are repeating the same pattern with STRC.

“By next year’s conference, attendees who buy STRC now may face similar losses to those who bought NAKA then,” Schiff warned, suggesting the preferred equity structure will eventually implode just as NAKA did.

Schiff’s Call-Out of Industry Complicity

Schiff went further, stating that every investment professional, government regulator, and financial journalist who does not publicly call out MSTR and STRC as scams and name Saylor as a fraud “can’t be trusted.”

The critique extends to the broader crypto industry. Schiff argued that crypto, “where hype and exaggeration rule,” was tailor-made for the Trump family and their ability to shill overpriced stocks to what he called “delusional investors.”

He suggested that after the bubble fully deflates, crypto industry workers will face a reckoning over which career path to take next.

Bitcoin’s “Hope” Problem

Schiff also attacked Saylor’s central thesis that digital credit denominated in Bitcoin will deliver superior returns compared to alternatives such as gold or the S&P 500.

“Expected by whom?” Schiff asked, noting that Bitcoin’s expected return is “more hope than forecast.”

He argued that investing based on hope rather than empirical data or fundamental analysis will end poorly for retail investors.

Beyond his Strategy critique, Schiff issued a broader economic warning. He cited Federal Reserve Chair Powell’s own admission that inflation remained uncontrolled except during crisis periods, averaging 3.7% per year over 30 years before 2010 and only dropping to 1.7% during the 2008 financial crisis and subsequent recession.

“Inflation is breaking out, bonds are breaking down, and stocks will follow bonds lower,” Schiff warned.

He predicted stagflation would worsen into recession, sending federal budget deficits soaring while the Fed cuts rates despite policy mandates to hike.

His conclusion: “Buy gold and silver.”

The Bigger Picture

Schiff’s sustained attack on MicroStrategy reflects a fundamental disagreement about where value lies in uncertain economic times. While Saylor and crypto advocates argue that Bitcoin offers superior returns and store of value properties, Schiff contends that precious metals offer more reliable downside protection.

For STRC investors betting on digital credit and Bitcoin appreciation, Schiff’s comparison to NAKA’s collapse serves as a cautionary reminder that crypto hype cycles have ended badly before and will likely do so again.