Peter Schiff Says MSTR's Gains Are Built On Speculation, Not Bitcoin, As Demand Hits Record Low

• Peter Schiff, CEO of Euro Pacific Asset Management, said on Sunday that Strategy Inc's stock outperformed the Nasdaq over five years despite Bitcoin gaining only 12%, calling the rally a product of investor speculation rather than Bitcoin's performance
• On the same day, Strategy Executive Chairman Michael Saylor posted a chart showing the company holds 762,099 Bitcoin valued at $50.90 billion.
• On-chain data from CryptoQuant showed Bitcoin's apparent demand hit a record low of negative 86,000 Bitcoin at the start of April.

Peter Schiff, CEO of Euro Pacific Asset Management and a longtime Bitcoin (BTC) critic, said on Sunday that Strategy Inc's (MSTR) stock gained 68.5% over five years, outperforming the Nasdaq (NDAQ), despite Bitcoin rising only 12% over the same period. 

According to Schiff, Strategy Inc’s outperformance had nothing to do with Bitcoin itself. "It's due to investors' willingness to overpay for MSTR so Saylor could keep overpaying for Bitcoin," he wrote on X. 

On the same day, Strategy Inc’s Executive Chairman Michael Saylor posted a chart showing that the company holds 762,099 Bitcoin at an average purchase price of $75,694, with a total reserve value of $50.90 billion. Saylor captioned the post "Back to Work," his phrase typically associated with new Bitcoin purchases.

Strategy’s stock was up by 0.34% during after-hours trade. The stock had closed over $119 on Friday. On Stocktwits, the retail sentiment around MSTR remained in the ‘bullish’ territory, while chatter levels around it remained ‘high’ over the past day.

Bitcoin Records Low Demand

On-chain data published the same day added weight to Schiff's broader argument. CryptoQuant analyst Darkfost explained that Bitcoin's apparent demand had hit a record low of -86,000 Bitcoin at the start of April. 

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Apparent demand is calculated as the difference between new Bitcoin issuance and the amount of supply that has remained inactive for more than one year, a metric that measures whether structural accumulation is sufficient to absorb newly created supply.

Despite the strategy's continued accumulation, the data showed that the broader market was not keeping pace. "As long as this dynamic does not improve, Bitcoin will likely struggle to break out of this rather negative environment," the analyst added.

Bitcoin’s price was trading at $67,450, up by 0.1% over the past 24 hours. On Stocktwits, the retail sentiment around BTC remained in the ‘bearish’ zone, while chatter levels around it remained ‘low’ over the past day.

Schiff’s Views On War, Oil, And Gold

Schiff's comments on Strategy came alongside a broader macro argument about the consequences of the ongoing US-Iran war. On Tuesday last week, Schiff wrote that while an extended war and higher oil prices are bearish for US stocks and bonds, "the results of war, soaring debt, rising inflation, recession, higher unemployment, and a housing and financial crisis, are bullish for gold."

Schiff predicted gold could reach $11,400, drawing a historical comparison to the metal's rally following the 2008 financial crisis. He has argued that war spending, wider deficits, and a weaker dollar made gold the stronger long-term hold. 

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