Peter Schiff Accuses MicroStrategy’s Business Model of Being a “Fraud” and Challenges Michael Saylor to a Debate
Gold investor Peter Schiff has sparked controversy by calling MicroStrategy’s business model a “fraud” and challenging the company’s founder, Michael Saylor, to a debate at Binance Blockchain Week in Dubai, United Arab Emirates (UAE) in December. Schiff, a well-known critic of cryptocurrencies and Bitcoin, has been a staunch advocate for gold and has consistently expressed his skepticism towards the crypto industry.
Schiff argued that MicroStrategy’s business model is based on income funds buying its “high-yield” preferred shares, but the published returns are never actually paid out. He claimed that once fund managers realize this, they will dump the preferred shares, triggering a “death spiral” for the company. 
Bitcoin and MicroStrategy Struggle as Gold Remains Above $4,000
The criticism from Schiff comes amid a backdrop of Bitcoin’s price falling below $99,000 and a general downturn in the crypto treasury sector. In contrast, gold has returned to price levels above $4,000, with its price movement showing a significant difference compared to Bitcoin. 
MicroStrategy’s mNAV (multiple on net asset value) has fallen below 1 in November but has risen back to 1.21 at the time of writing. However, an mNAV of 1.21 is still relatively low, with investors considering a healthy mNAV for a treasury company to be 2 or higher. MicroStrategy’s stock has fallen over 50% since July and is trading at around $199 at the time of writing.
Gold’s Resilience and Bitcoin’s Struggles
Meanwhile, gold has successfully defended the $4,000 per ounce mark despite a brief dip below this psychological support level and is trading at around $4,085 per ounce at the time of writing. Gold hit an all-time high of about $4,380 an ounce in October and rose to a market cap of over $30 trillion before falling back to current prices. For more information, read the full article on Cointelegraph.
