Peter Schiff Suggests MicroStrategy and BlackRock Will Liquidate Their Bitcoin

MicroStrategy recently revealed that it has acquired an additional 169 Bitcoin (BTC) over the last month. Current estimates indicate that MicroStrategy, along with BlackRock’s ETF, IBIT, collectively hold around 569,000 BTC, valued at approximately $36 billion.

As of now, MicroStrategy possesses 226,500 BTC, equating to about $15.06 billion, while the IBIT ETF holds 343,387.46 BTC, valued at roughly $21.7 billion.

Peter Schiff, a prominent critic of cryptocurrencies, expressed concerns regarding the substantial Bitcoin holdings of these two major entities. He suggests that there may be pressure for the companies to liquidate their BTC assets.

Schiff’s commentary highlights the possibility that MicroStrategy might face demands from creditors to sell its cryptocurrency holdings. Additionally, he posits that the IBIT ETF could be compelled to sell Bitcoin if investors choose to exit and minimize their losses. In Schiff’s view, these losses are unavoidable, as he believes Bitcoin holds no value.

The impact on the market resulting from the sale of a significant stake was recently illustrated by an event in Germany, where the sale of a $3 billion stake led to a 20% price drop within a month.

Should Schiff’s predictions prove accurate, and both BlackRock and MicroStrategy decide to divest their Bitcoin assets—far exceeding the amount sold by Germany—the consequences for the market could be substantial.