Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Economist and market commentator Peter Schiff projected Monday that the next Bitcoin (CRYPTO: BTC) pullback would trigger an unrealized loss for Michael Saylor-led Strategy Inc. (NASDAQ:MSTR) on its BTC purchases.

What Happened: During his YouTube podcast, Schiff weighed in on Bitcoin recapturing the crucial $100,000 level and Strategy buying billions in the cryptocurrency funded by debt.

“His average cost now is almost 70,000 a bitcoin, so it’s getting higher and higher,” he said.

Trending: Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies.

Schiff predicted that Strategy’s average acquisition cost might reach $70,000 by his next purchase, and the subsequent Bitcoin decline could push the firm “into the red” for the first time. “We’ll see what kind of fireworks that sparks,” he added.

Strategy didn’t immediately respond to Benzinga’s request for comment.

See Also: Grow your IRA or 401(k) with Crypto – unlock  the power of alternative investments including a Crypto IRA within your retirement account.

Why It Matters: Saylor’s company Strategy, formerly MicroStrategy, has been heavily investing in Bitcoin. The firm reported acquiring 13,390 BTC for approximately $1.34 billion at an average price of $99,856 per coin on Monday, pushing their total Bitcoin holdings to 568,840 BTC, accumulated at a combined cost of $39.41 billion and an average purchase price of $69,287.

Notably, the Bitcoin treasury company came close to experiencing an unrealized loss on its investments last month after the apex cryptocurrency slipped below $75,000 following President Donald Trump’s sweeping tariff announcement.

Schiff, a fierce critic of all things Bitcoin, has consistently questioned Strategy’s Bitcoin playbook, arguing that its commitment to repay a large sum of money to debt holders could be at risk if the leading cryptocurrency falls sharply.

Read Next:

New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase. A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase.

Story Continues

Photo Courtesy: Wirestock Creators on Shutterstock.com

Send To MSN:  Send to MSN

This article Peter Schiff Predicts 'Fireworks,' Says Michael Saylor's Strategy Will See Unrealized Loss During Bitcoin's Next Bearish Dip originally appeared on Benzinga.com

View Comments