Peter Schiff Expects 50% MSTR Stock Crash and Bitcoin Below $50K

51 minutes ago by · 3 mins read

Economist Peter Schiff said that MSTR stock correction is not over, predicting another 50% crash and Bitcoin price drop under $50,000.

During the Dec. 17 trading session, the Strategy (MSTR) stock faced another 5.25% drop to $160. Amid the falling Bitcoin BTC $86 936 24h volatility: 0.6% Market cap: $1.74 T Vol. 24h: $49.80 B price, the largest corporate holder of BTC is facing pressure on its stock. Popular economist Peter Schiff noted that another 50% crash in the MSTR stock price can’t be ruled out. 

MSTR Stock Can Drop to $80, Bitcoin Under $50K, Says Peter Schiff

Economist Peter Schiff has lashed out at the underperformance of the MSTR stock, a popular Bitcoin proxy bet, citing severe technical weakness. He added that the stock price could see a further sharp decline and fall to $80, which means 50% down from the current level.

Adding further, Schiff noted that such a correction in MSTR stock could also lead to a Bitcoin price crash under $50,000. According to the official Strategy website, the mNAV of MSTR is at $1.09. This shows that the company’s market cap is very close to its Bitcoin holdings. As a result, Strategy enjoys almost no to nil premium over BTC.

Michael Saylor’s Strategy faces a tough time and mounting financial pressure as it commits to approximately $720 million in annual preferred dividend payments. According to market estimates, the company’s $1.44 billion capital buffer is sufficient to cover these obligations for roughly 24 months.

At the same time, investors are watching an upcoming decision by MSCI, expected within the next 30 days. If MSTR stock is excluded from relevant MSCI indices, analysts at JPMorgan estimate that the stock could face up to $2.8 billion in passive outflows.

Despite the concerns surrounding Strategy (MSTR), Michael Saylor has continued to buy more Bitcoins, taking his total holdings to 671,268 BTC. 

Michael Saylor Remains Absolutely Confident About MSTR Dividends

In his latest interview with Sky News, Saylor noted that if Bitcoin grows 0% for 100 years, they have about 75 years of dividends to pay. Even if BTC price grows marginally by 1.4% a year, Saylor said that his company can pay the dividends forever.

“If Bitcoin goes up more than 10.5% a year, we have escape velocity. The equity MSTR outperforms BTC,” he added.  With the MSTR stock already correcting nearly 65% from the top, some market analysts believe that it is in the oversold territory.

According to the latest information from BitcoinTreasuries, billionaire investor Steve Cohen’s hedge fund, Point72 Asset Management, has disclosed a new stake in Bitcoin-focused treasury firm Strategy (MSTR).

Meanwhile, Point72 purchased 390,666 shares of MSTR, representing an investment valued at approximately $65 million.

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