Peter Schiff’s Sarcastic Suggestion: Trump Media Should Bet on Bitcoin

Peter Schiff, a long-time economist and vocal critic of Bitcoin, has once again stirred the crypto pot. This time, he is targeting Trump Media & Technology Group (TMTG), the company behind the stock ticker DJT.

In a bold and potentially tongue-in-cheek tweet, Schiff suggested that TMTG, which he claims “doesn’t actually have a business,” should consider taking a page from MicroStrategy’s playbook.

Schiff Mockingly Advises Trump Media to “Bet Big” on Bitcoin

In a post on X (formerly Twitter), Schiff says that TMTG should convert its cash holdings into Bitcoin (BTC). Further, he urges Trump Media & Technology Group to borrow billions and issue more shares to buy even more Bitcoin, setting DJT stock up for a “moonshot.”

“Since DJT stock does not actually have a business, why doesn’t it just use its cash to buy Bitcoin?” Schiff wrote.  

Likely, with his usual hint of irony, the Bitcoin skeptic urges the firm to follow the Michael Saylor business playbook.

“Borrow billions and issue more shares, then use the money raised to buy even more Bitcoin,” he added.

This suggestion may seem uncharacteristic, given Schiff’s history with Bitcoin. He recently dismissed the BTC price surge as the “biggest bubble in history.” Schiff has been one of Bitcoin’s most relentless critics, frequently arguing that the asset lacks intrinsic value and will eventually crash.

Recently, he openly stated that many of his Bitcoin-related tweets are sarcastic, adding a layer of humor to his otherwise pessimistic views on the cryptocurrency. For Schiff, this latest comment appears to play into that tone, positioning TMTG’s potential Bitcoin strategy as a satirical example of the high-risk approach taken by companies like MicroStrategy.

“Peter would rather swim in salt instead of just buying some Bitcoin,” one user on X quipped.

However, Schiff’s call-out to Trump Media may also reflect his skepticism about TMTG’s business model. DJT has been volatile since its launch, with critics questioning its long-term viability.

The economist’s suggestion to pour the company’s cash reserves into Bitcoin could be viewed as a jab at both the speculative nature of cryptocurrency investments and TMTG’s business fundamentals.

MicroStrategy’s Aggressive Bitcoin Moves as a Blueprint

MicroStrategy, a business intelligence firm led by CEO Michael Saylor, has indeed gone all-in on Bitcoin. It recently announced its largest Bitcoin purchase to date. In total, the company holds over 160,000 BTC and plans to continue buying, with ambitions to invest up to $42 billion more in Bitcoin between 2025 and 2027.

This strategy has seen MicroStrategy leverage its balance sheet and even issue debt to fund its acquisitions, essentially betting the company’s future on Bitcoin’s success.

For Saylor, Bitcoin represents a safe haven and a hedge against inflation, especially given his belief in the US dollar’s declining purchasing power. Saylor’s approach has boosted MicroStrategy’s stock value, although it has also introduced significant volatility due to Bitcoin’s notorious price swings.

“This year, MSTR [MicroStrategy stock] treasury operations delivered a BTC Yield of 26.4%, providing a net benefit of approximately 49,936 BTC to our shareholders. This is equivalent to 157.5 BTC per day, acquired without the operational costs or capital investments typically associated with bitcoin mining,” Saylor shared recently.

It is worth mentioning that MicroStrategy leverages debt to grow its Bitcoin portfolio while managing existing debt obligations. Since 2020, the firm has employed this approach, raising billions of dollars to acquire Bitcoin.

As Schiff has previously labeled Bitcoin a speculative asset bound to implode, his suggestion that TMTG should mimic MicroStrategy’s tactics might be loaded with irony. By invoking MicroStrategy’s strategy in a sarcastic tone, he is likely reminding investors of the risks involved in placing a company’s future in such a volatile asset.