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March 12, 2025 by Mutuma Maxwell
- MicroStrategy’s stock has dropped over 55% since November 2024.
- The company’s shares fell 10% on March 10 after Bitcoin’s price declined.
- Peter Schiff warns that MicroStrategy’s debt could lead to bankruptcy.
MicroStrategy’s stock has declined sharply in recent months, raising concerns about its Bitcoin-focused strategy. The company’s shares have dropped over 55% since November 2024, with a 10% fall on March 10. Economist Peter Schiff argues that the firm’s reliance on Bitcoin and rising debt put it at risk.
MicroStrategy’s Stock Decline Sparks Criticism
MicroStrategy, now known as Strategy, has faced a significant stock drop due to Bitcoin’s recent downturn. The company’s stock fell nearly 10% on March 10 after Bitcoin dropped to approximately $77,800. The decline followed President Donald Trump’s executive order on the Strategic Bitcoin Reserve, which did not include immediate government Bitcoin purchases.
Peter Schiff, a well-known Bitcoin skeptic, claims the company’s financial health is deteriorating. He argues that its growing debt could lead to bankruptcy if Bitcoin’s price does not recover. Schiff has been vocal on social media, stating that the firm’s debt burden is unsustainable.
Strategy needs a new strategy. Since its November 2024 high, $MSTR is already down over 55%, and there is no bottom anywhere in sight. Clearly, the strategy is not working. The company needs a new CEO too. It's time to fire @saylor.
— Peter Schiff (@PeterSchiff) March 10, 2025Despite concerns, MicroStrategy remains the largest corporate holder of Bitcoin, owning 499,096 BTC. The company acquired Bitcoin at an average price of $66,423 per BTC, with holdings valued at around $41 billion. However, its market performance remains closely linked to Bitcoin’s price movements.
Bitcoin’s Price Decline and Market Reactions
Bitcoin’s recent drop has caused liquidations among leveraged traders, leading to broader market instability. Large Bitcoin holders, known as whales and sharks, have accumulated nearly 5,000 BTC since March 3. Analysts suggest this accumulation could indicate a potential price recovery.
Santiment, a blockchain analytics firm, reported that major Bitcoin holders have quietly started buying again. The firm noted that long liquidations triggered significant sell-offs, causing panic in the market. However, some analysts view whale accumulation as a potential bullish signal if the trend continues.
Bitcoin’s price has faced pressure from regulatory developments and macroeconomic concerns. Market instability, along with recent government actions, has contributed to increased volatility. Traders remain cautious as uncertainty continues to impact Bitcoin’s valuation.
Peter Schiff Warns of MicroStrategy’s Debt Risks
Peter Schiff warns that MicroStrategy’s debt burden could force it to sell Bitcoin at a loss. He believes the company’s rising debt per share increases its financial risk. Schiff argues that if Bitcoin fails to rise significantly, the company may struggle to meet its obligations.
MicroStrategy recently announced a $21 billion At-The-Market (ATM) offering of Series A Perpetual Strike Preferred Stock. Schiff has criticized this move, stating that the firm may not succeed in selling these shares. He argues that MicroStrategy could soon trade at a discount to its Bitcoin holdings.
Despite Schiff’s warnings, MicroStrategy’s supporters defend its Bitcoin strategy. Some argue that the company’s stock has remained up significantly over the past five years, and others highlight that its price has increased by 85% in the last six months.
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