Peter Schiff Questions Bitcoin Valuation; MicroStrategy Stock Down 80% From Peak

On June 23, economist Peter Schiff questioned whether Bitcoin can be considered "cheap," arguing the asset lacks traditional valuation metrics such as earnings, yield, or book value. "With no earnings, yield, book value, or productive use, bitcoin has no valuation anchor," Schiff wrote, contending that calling Bitcoin cheap simply reflects hope that "a greater fool pays more."

Schiff cited MicroStrategy Inc. (Nasdaq: MSTR), the largest corporate Bitcoin holder, as evidence of growing risks for bitcoin-linked investment vehicles. As of June 24, MSTR shares had declined 80% from their peak, including a 20% drop over the prior five days. The company's preferred shares (STRC) fell nearly 13% and yielded 13.2%, prompting Schiff to warn that the decline signals investor concern over the company's capital-raising strategy and Bitcoin exposure.