A well-known gold advocate denounced MicroStrategy’s investment plan to purchase more Bitcoin and build up its crypto reserve.

Peter Schiff, a vocal critic of the firstborn cryptocurrency, also slammed the pro-crypto stance of President-elect Donald Trump, arguing that it is detrimental to the country.

MicroStrategy’s Bitcoin Investment Strategy

MicroStrategy revealed that it has a $42 billion investment strategy to buy more Bitcoin in the next few years.

Analysts said that the American development company is known for purchasing a great deal of cryptocurrency regardless of market fluctuations.

Reports stated that MicroStrategy recently bought 55,500 BTC worth $5.4 billion, allowing the company to strengthen its position in the crypto sector.

As of press time, MicroStrategy owns 386,700 BTC worth over $36 billion, putting the firm among the biggest corporate holders of cryptocurrency.

A Dangerous Bet

Schiff criticized MicroStrategy’s continuous purchase of the digital asset, denouncing the $42 billion investment plan to acquire more Bitcoin within three years.

The Bitcoin critic described MicroStrategy’s BTC investment plan as “a dangerous bet.”

It’s now been four weeks since $MSTR announced its three-year plan to spend $42 billion buying #Bitcoin. MSTR has already spent $10 billion. At this rate, the three-year plan will be completed in about 16 weeks. Once the buying is done, expect both Bitcoin and MSTR to crash.

— Peter Schiff (@PeterSchiff) November 26, 2024

“At this rate, the three-year plan will be completed in about 16 weeks,” Schiff said.

He sees the price hike brought by what is called MicroStrategy’s “bold plan” will be short-term, leading to a considerable decline in BTC price and a drop in the company’s stock price.

Moreover, Schiff believes that the company’s large-scale purchase only brings an artificial price appreciation, noting that it may pose a problem to the firm because it put all its proverbial eggs in one basket which is not a smart concept in any investment.

BTC market cap currently at $1.88 trillion. Chart: TradingView.com

Schiff predicts that MicroStrategy might not be able to fund future purchases of Bitcoin, echoing his view that this move could possibly hurt both the company and its shareholders.

On the other hand, MicroStrategy executive Michael Saylor defended the company’s investment approach, saying that they have no plan of selling their crypto assets in the near future.

Image: ETMarkets.com

Saylor said that the company remains bullish on the future of BTC, urging other companies to draw inspiration from their investment strategy.

Historically, Schiff has been a staunch critic of MicroStrategy’s moves to buy Bitcoin.

Trump’s Pro-Crypto Stance: Detrimental To The Economy?

Schiff also criticized Trump in his plans to implement regulations that are pro-cryptocurrency, arguing that it will weaken the country’s economic standing.

“When the government picks winners and losers, it usually picks losers. Thanks to the Trump administration’s picking bitcoin, Wall Street is winning big by misallocating capital to BTC and related value-destroying businesses,” Schiff stated.

The staunch crypto critic believes that the US would become weaker once it became a Bitcoin superpower.

Meanwhile, crypto advocates dismissed Schiff’s opinions, saying that it is among the dumbest posts ever.

Featured image from FXLeaders, chart from TradingView

Metaplanet, a Japanese investment firm, has announced plans to raise $62 million by issuing stock acquisition rights to EVO Fund. The raised funds will be allocated to buying more Bitcoin for its treasury management.

The company stressed that it will continue to maintain a Bitcoin-first strategy. 

Metaplanet outlined its strategy in a press release, confirming the issuance of its 12th series of Stock Acquisition Rights. Starting Dec. 16, 2024, the firm will allocate 29,000 units through a third-party allotment. 

Each unit gives EVO Fund the right to purchase 100 common shares, priced at 614 yen per unit, amounting to a total of 17,806,000 yen.

“We are prioritizing a Bitcoin-first, Bitcoin-only approach to treasury management. We have made it clear that we intend to utilize debt and periodic stock issuance to systematically increase our Bitcoin holdings while reducing exposure to a depreciating yen,” Metaplanet stated in the press release. 

Throughout this year, Metaplanet has been actively leveraging stock acquisition rights to increase its Bitcoin holdings. 

In October, the firm concluded its 11th issuance, raising 10 billion yen ($66 million), with a significant portion allocated to further Bitcoin purchases. The company’s shares surged over 1,000% in 2024. 

Public Firms Continue to Buy More BTC

Publicly traded companies are increasingly investing in Bitcoin. Yesterday, Chinese public company SOS Limited also bought $50 million worth of BTC. Following the news, its stock price surged over 100%. 

Also, MicroStrategy recently acquired another $5.4 billion worth of BTC. This was its third round of Bitcoin purchase in November alone. The company has spent over $16 billion on Bitcoin this year, maintaining its status as the largest institutional Bitcoin holder. 

Similar to other firms, MircoStrategy’s stock performance has mirrored Bitcoin’s surge. Its shares have climbed 450% year-to-date, placing it among the top 100 US public companies.

Other firms are also ramping up Bitcoin investments. Marathon Digital recently raised $1 billion through a convertible senior notes offering, earmarking the majority of the funds for Bitcoin acquisitions.

Bitcoin’s price performance continues to fuel optimism. Despite reaching $99,000 in the current cycle, public firms remain confident in Bitcoin’s long-term potential. 

In fact, Pantera Capital recently projected that Bitcoin could hit $740,000 by 2028, reinforcing the bullish sentiment across the industry.

Volatility Shares, a financial firm known for its novel exchange-traded funds, is launching a new line of ETFs. The financial instrument, using a one-plus-one model, will give investors 100% leveraged exposure to two distinct assets simultaneously.

This novel product structure combines major asset classes like cryptocurrencies, equity indices, and volatility measures. It offers portfolios such as BTC+ETH, Nasdaq+ETH, S&P+BTC, S&P+ETH, S&P+Nasdaq, and S&P+VIX.

Volatility Shares Introduces Diversified Exposure to ETFs

According to Eric Balchunas, an ETF specialist at Bloomberg Intelligence, the one-plus-one ETFs are reminiscent of “Return-Stacked ETFs.” They use leverage to maximize exposure without requiring additional capital from investors. Balchunas highlighted the appeal of these products for investors seeking to optimize their portfolio allocation without sacrificing exposure to one asset for another.

“VolatilityShares launching a new line of One+One ETFs which use leverage to give you 100% exposure to two assets at once e.g. 100% QQQ + 100% Ether. Seems similar to the Return Stacked ETFs,” Balchunas remarked.

Jeffrey Ptak, CFA and Chief Ratings Officer at Morningstar, provided additional insight. He explained that the ETFs aim to deliver 100% notional exposure to each of the two underlying assets by utilizing futures contracts.

For instance, the Nasdaq+BTC ETF would simultaneously provide full exposure to the tech-heavy Nasdaq index and Bitcoin’s volatile crypto market. Ptak also confirmed that filings for this line of ETFs have been submitted to regulatory bodies.

Implications for Investors as Crypto-ETF Competition Heats Up

For investors, one-plus-one ETFs represent significant growth in the exchange-traded fund space. Combining traditional financial instruments like the S&P 500 or Nasdaq with high-growth assets such as Bitcoin and Ethereum can allow for unique diversification strategies.

However, the leverage inherent in these products introduces additional risks, particularly for volatile assets like cryptocurrencies. This could amplify both gains and losses.

“Products like these can be game changers for portfolio diversification, but their complexity and leverage make them suitable for informed investors who understand the risks,” said an industry expert following the announcement.

Nevertheless, Volatility Shares’ novel approach arrives amidst increased activity in the crypto ETF space. Bitwise recently filed with the US Securities and Exchange Commission (SEC) for a “Bitwise 10 Crypto Index ETF.”

The index seeks to track the performance of a diversified basket of top cryptocurrencies. The move reflects the growing demand for accessible crypto investments that go beyond single-asset offerings like Bitcoin or Ethereum.

Franklin Templeton also submitted a proposal to the SEC for a Bitcoin and Ethereum Index ETF. This fund would directly compete with Volatility Shares’ dual-asset products by targeting the same market of investors seeking to combine traditional equity exposure with cryptocurrencies.

Despite the surge in crypto-ETF filings, regulatory challenges remain a key hurdle. The SEC has been historically cautious in approving crypto-related ETFs due to concerns over market manipulation and volatility. However, with growing interest from institutional players like BlackRock, Franklin Templeton, and now Volatility Shares, the momentum toward approval may be shifting.