Strategy’s Bitcoin Bet: A Profitable Gamble or a Misstep?

On Monday, December 29, 2025, Michael Saylor’s Strategy (formerly MicroStrategy) announced its latest Bitcoin purchase, adding over $100 million worth of the digital asset to its already substantial holdings. This move has sparked a mix of celebration and skepticism within the crypto community. While some hail Strategy’s consistent buying as a bold and profitable strategy, others, including renowned economist Peter Schiff, have criticized the move, arguing that the company’s profits are far from impressive.

Strategy’s Bitcoin Move: A Misguided Bet?

Schiff’s comments came swiftly after Strategy’s announcement, revealing that the company had acquired 1,229 BTC at approximately $109 million. The average purchase price for these coins was around $88,568, further bolstering Strategy’s already considerable Bitcoin holdings.

Less than 30 minutes after the announcement, Schiff took to the X (formerly Twitter) platform to share his thoughts on Strategy’s move. The economist is not impressed with how the company’s Bitcoin bet has played out so far, despite sinking over $50 billion into the digital asset.

Schiff points out that despite aggressively buying BTC over the last five years, Strategy’s profits sit at only 16%. Breaking this down over the number of years that the company has been buying Bitcoin, it averages out to around a 3% annual profit on the investment. Given this, the economist believes that the company would’ve been better off if it had accumulated any other asset besides Bitcoin.

Interestingly, the prices of other assets such as gold and silver have hit new all-time highs this year, while BTC has continued to struggle. This performance disparity has led Schiff to question the wisdom of Strategy’s Bitcoin bet.

Breaking Down Strategy’s BTC Holdings

Current Holdings and Profits

Presently, Strategy retains its title as the publicly-traded company with the highest amount of Bitcoin holdings. According to data from the data aggregation website, CoinGecko, Strategy currently holds 672,497 BTC, which accounts for 3.202% of the total Bitcoin supply.

The entire stack has cost the company a whopping $50.44 billion to accumulate, with an average price of $74,997 at the time of the last purchase. At a 16% profit margin so far, Strategy is currently sitting on over $8 billion in unrealized profits, down from its all-time high of $22 billion in profits when the Bitcoin price crossed $126,000 back in October.

Historical Performance

Strategy’s Bitcoin holdings have not always been profitable. In fact, the company has experienced significant losses in the past. For instance, in 2021, when the Bitcoin price was around $60,000, Strategy’s Bitcoin holdings were worth approximately $40 billion. However, as the price of Bitcoin plummeted to around $30,000 in 2022, the value of Strategy’s holdings dropped to around $20 billion, resulting in a loss of $20 billion.

This volatility highlights the risks associated with investing in Bitcoin, even for a company as large as Strategy. Despite this, the company continues to buy more Bitcoin, suggesting a belief in the long-term potential of the asset.

Why Strategy Continues to Buy Bitcoin

Despite the criticism from economists like Peter Schiff, Strategy continues to buy Bitcoin. The company’s CEO, Michael Saylor, has been a vocal advocate for Bitcoin, often comparing it to gold and other traditional assets. He believes that Bitcoin’s scarcity and decentralized nature make it a superior store of value.

Saylor also argues that Bitcoin’s price is not correlated with traditional financial markets, making it a good hedge against inflation and economic uncertainty. He believes that as more institutions and individuals recognize the potential of Bitcoin, its price will continue to rise.

Conclusion

Strategy’s Bitcoin bet is a complex and controversial topic. While some see it as a bold and profitable strategy, others, like Peter Schiff, argue that the company would have been better off investing in other assets. The future of Bitcoin and its potential as a store of value will ultimately determine the success of Strategy’s bet.

Regardless of the outcome, one thing is clear: Strategy’s Bitcoin holdings are a significant and influential force in the crypto market. The company’s actions and decisions will continue to shape the narrative around Bitcoin and its potential as a mainstream asset.

FAQ

Is Strategy’s Bitcoin bet a good investment?

Whether Strategy’s Bitcoin bet is a good investment depends on your perspective. Some see it as a bold and profitable strategy, while others, like Peter Schiff, argue that the company would have been better off investing in other assets. The future of Bitcoin and its potential as a store of value will ultimately determine the success of Strategy’s bet.

Why does Strategy continue to buy Bitcoin?

Strategy continues to buy Bitcoin because the company’s CEO, Michael Saylor, believes in the long-term potential of the asset. He compares Bitcoin to gold and other traditional assets, arguing that its scarcity and decentralized nature make it a superior store of value. Saylor also believes that Bitcoin’s price is not correlated with traditional financial markets, making it a good hedge against inflation and economic uncertainty.

What are the risks associated with investing in Bitcoin?

Investing in Bitcoin comes with several risks. The asset is highly volatile, with its price fluctuating significantly over short periods. This volatility can result in significant losses, as seen in the case of Strategy’s Bitcoin holdings in 2021 and 2022. Additionally, the regulatory environment around Bitcoin is still uncertain, which could impact its price and adoption.

What is the future of Bitcoin?

The future of Bitcoin is uncertain, but many believe that it has significant potential as a store of value and a medium of exchange. As more institutions and individuals recognize the potential of Bitcoin, its price could continue to rise. However, the asset’s volatility and regulatory uncertainty could also limit its growth.

Should I invest in Bitcoin?

Whether you should invest in Bitcoin depends on your individual circumstances and risk tolerance. The asset has significant potential, but it also comes with risks. If you’re considering investing in Bitcoin, it’s important to do your own research and understand the risks involved. It’s also a good idea to diversify your portfolio and not put all your eggs in one basket.