Economist Peter Schiff has renewed his criticism of Strategy’s corporate structure, warning that it creates a financial dead end and exposes the firm to an unsustainable model. This comes at a time when the market is showing signs of fragility and sentiment shifts are occurring faster than in previous cycles.
Schiff argues that Strategy’s model of accumulating Bitcoin through cash flow and debt creates an extreme level of risk that no business can absorb over the long term. The economist contends that the company uses every available dollar to deepen its Bitcoin exposure and finances part of those purchases with credit lines aimed at acquiring additional BTC.
In Schiff's view, this setup removes any operational buffer and traps the company in a dynamic where only the price of Bitcoin matters. He believes that even a bull market does not guarantee the project’s viability because the balance sheet becomes a permanent bet with no alternatives if the price curve stalls or reverses.
Extreme Fear and Volatility Highlight Market Fragility
The debate over Strategy’s approach has escalated following a trader’s publication of comparative analyses of the 2025 and 2021 Bitcoin cycles. The charts indicate that the market is reaching extreme-fear levels around $95,000 to $100,000 and is doing so much faster than during the 2021 peak. In that previous cycle, fear appeared much later and at far lower prices.
This behavior suggests that, despite increased institutional participation, the market’s psychological structure remains fragile, and leveraged positions amplify each market move. Critics interpret this data as evidence that companies fully dependent on Bitcoin are exposed to an emotional variable that is hard to control.
Schiff uses this argument to insist that Strategy lacks a sustainable operational plan and that its balance sheet is defined by a single direction: accumulating more Bitcoin regardless of market conditions.
Upcoming Debate in Dubai Could Shape Corporate Bitcoin Narrative
The dispute between Peter Schiff and Strategy’s leadership is set to escalate when Schiff and Strategy’s co-founder face off in Dubai during Binance Blockchain Week. This exchange could become a turning point in the ongoing debate over Bitcoin’s role in corporate treasuries.
Supporters of Strategy view its approach as an accumulation strategy built around scarce assets that are gaining prominence. Conversely, detractors see it as a financial experiment that relies on a narrative with no safety net.