Many investors have raised questions about the investment strategy of companies heavily investing in Bitcoin. Peter Schiff, a notable critic of Bitcoin, recently highlighted that the firm Strategy's investments in Bitcoin have resulted in modest returns over a five-year period. Schiff argues that any alternative investment would have outperformed Bitcoin, yielding higher returns over the same timeframe.
Strategy, which has invested an average of $75,000 per Bitcoin, reportedly achieved a paper profit of only 16%. This translates to an annual return of just over 3%, a figure that some find underwhelming considering the nature of cryptocurrency as a high-risk, high-reward investment. As the stock MSTR, which is often viewed as a proxy for Bitcoin, continues to decline, down 46% as of 2025, these assertions have gained attention.
Critics of Schiff have pointed out that his analysis fails to consider the timing of each Bitcoin purchase made by Strategy, suggesting that his comparison does not accurately reflect the firm’s overall performance. They emphasize the importance of taking into account the nuances of staggered purchases over time rather than simply averaging costs, which can distort perceptions of investment success.
In defense of its financial strategy, Strategy raised its cash reserves to $2.2 billion, ensuring adequate liquidity to meet future obligations without needing to liquidate its Bitcoin holdings. Additionally, as of late December 2025, Bitcoin has appreciated by approximately 219% over the past five years, increasing from $27,400 to around $87,700, while gold has risen by just over 130% during the same period.