Economist and staunch Bitcoin BTC/USD critic Peter Schiff slammed the idea of companies using the apex cryptocurrency as a treasury asset, arguing it’s a gamble with shareholder’s funds.
What Happened: Schiff’s scathing remarks came in response to MicroStrategy Inc. MSTR co-founder Michael Saylor’s post where he cheered the possibility of more corporations planning to include Bitcoin in their balance sheets as a strategic asset.
Schiff wrote, “Bitcoin is neither strategic nor appropriate as a treasury asset. Companies shouldn’t flat out gamble with shareholder’s funds. They should pay dividends and let shareholders gamble with their own money.”
For the uninitiated, MicroStrategy has spearheaded the growing trend of purchasing and holding Bitcoins. It is the largest corporate holder of the cryptocurrency, with a stash worth nearly $15 billion, according to bitcointresuries.net.
Last week, leading miner Marathon Digital Holdings Inc. MARA announced the purchase of $100 million of Bitcoin as part of its buy-and-hold strategy.
Why It Matters: This isn’t the first time Schiff has voiced skepticism toward holding Bitcoin as a strategic reserve. He has previously questioned the logic behind owning Bitcoin if no one ever sells it.
Schiff also slammed former President Donald Trump’s endorsement of Bitcoin at a recent conference, calling it a strategic move to gain political support rather than a commitment to make it a reserve asset.
Price Action: At the time of writing, Bitcoin is exchanging hands at $66,140.89, down 0.54% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: Wikimedia Commons
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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