Peter Schiff warns MicroStrategy stock is overvalued, tied to Bitcoin, predicting a potential crash

From Investing.com

Friday, October 22, 2024 4:30:19 pm:

Renowned economist Peter Schiff warns MicroStrategy stock is highly overvalued, predicts “real bloodbath” once it crashes. Schiff’s skepticism of Bitcoin and focus on gold as value store may influence his comments.

MicroStrategy’s market value skyrockets from $1.5 billion to over $40 billion in four years, thanks to Bitcoin approach by cofounder Michael Saylor. Owns 252,220 Bitcoin, representing 1% of total supply.

MicroStrategy’s stock outperforms S&P 500 since 2020, rising by 1,540% compared to S&P’s 111%. Company transitions into Bitcoin development firm, seeking ways to merge Bitcoin with traditional finance.

MicroStrategy’s stock continues to surpass Bitcoin’s price, Premium reaches 2.5 times its Bitcoin holdings at around $17 billion. Schiff’s warning may reflect growing skepticism towards companies tied closely to Bitcoin’s performance. Time will tell if his prediction of a crash holds true.

Read more at Investing.com: Peter Schiff Issues Warning on MicroStrategy Stock: Details By U.Today