Schiff also challenged Binance co-founder Changpeng Zhao (CZ) to a debate, slated to take place in December in the United Arab Emirates.
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Gold investor Peter Schiff called Strategy’s business model, which hatched the biggest Bitcoin () treasury company in the world, a “fraud” on Sunday and challenged the company’s founder, Michael Saylor, to a debate.
Schiff, who is one of crypto and and a , Saylor to a debate at Binance Blockchain Week in Dubai, United Arab Emirates (UAE), in December. In a separate X , Schiff argued:
“MSTR’s business model relies on income-oriented funds buying its ‘high-yield’ preferred shares. But those published yields will never actually be paid. Once fund managers realize this, they’ll dump the preferreds.”
Once this happens, Strategy will no longer be able to issue more debt, sparking a “death spiral,” Schiff continued.
Schiff’s challenge and negative outlook on Bitcoin and the broader crypto industry came amid Bitcoin and a general , as gold reclaimed price levels above $4,000.
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The price of BTC is down over 20% from its all-time high above $125,000 reached in October, days before the that wiped away tens of billions in value from the crypto market.
Strategy’s mNAV, its multiple on net asset value, or the monetary premium reflected in the company’s stock price over its underlying BTC holdings, but has rebounded to 1.21 at the time of this writing, to the company.
Despite the modest rebound, an mNAV of 1.21 is still relatively low; investors consider a healthy mNAV for a treasury company to be 2 or higher. Strategy’s stock is down by over 50% since July and is trading at about $199 at the time of this writing.
Meanwhile, gold has successfully defended the $4,000 per ounce level below this psychological support level and is trading at about $4,085 per ounce at the time of this writing.
Gold reached an all-time high of about $4,380 per ounce in October, of over $30 trillion before retracting to current prices.
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