Schiff Slams Saylor's Digital Credit Vision: Sell Bitcoin Now

Long-time Bitcoin critic Peter Schiff has issued an advisory to his followers to sell the cryptocurrency and Strategy's stock (MSTR). According to him, Michael Saylor, Founder and Chairman of MicroStrategy, has abandoned his 'digital credit' vision. Saylor had long touted the use of BTC as collateral to raise funds through its STRC and other debt instruments.

However, this strategy has become a risk for Strategy and the entire BTC market amid the extended crypto winter. Recently, Strategy sold 1,690 BTC (worth $108.6M) last week, which helped increase its cash reserve to $4.65B, or 2.7 years of coverage for its dividend obligations tied to STRC and others.

Schiff views this as a failure of Saylor's 'digital credit' vision and advises his followers to sell MSTR and BTC now, citing that lenders have lost confidence in Bitcoin as collateral and prefer traditional fiat money instead.

The sale was part of Strategy's new BTC monetization plan, which has been met with mixed reactions from analysts. Some, like Grayscale, believe it's a slow deleveraging that is net positive for BTC in the long run.