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.

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.

In a recent interview with Bloomberg, Galaxy CEO Mike Novogratz claimed that a US Bitcoin Reserve was unlikely to pass. Although he said such a law would push Bitcoin to $500,000, Novogratz believes that President Donald Trump will have insufficient Senate support.

Polymarket odds also rate the chance of passing as very low, but it only accepts bets on Trump accomplishing it very quickly after the inauguration.

The Bearish Argument for a Bitcoin Reserve

In a recent interview with Bloomberg, Galaxy CEO Mike Novogratz was pessimistic about the chances of a US Bitcoin Reserve. Although Novogratz has repeatedly spoken about his high hopes for friendly regulation, he didn’t see a clear pathway for this campaign promise. Simply put, there are too many hurdles between the federal government and regular Bitcoin purchases.

“It’s a low probability. While the Republicans control the Senate, they don’t have close to 60 seats. I think that it would be very smart for the United States to take the Bitcoin they have and maybe add some to it… I don’t necessarily think that the dollar needs anything to back it up,” Novogratz claimed.

To be clear, he also emphasized that such a Reserve would be beneficial for Bitcoin, predicting it would shoot the price to $500,000. However, Novogratz doesn’t think the existing support is enough.

Senator Cynthia Lummis got bipartisan support for her Bitcoin Reserve bill, and some state-level representatives also support the act. These vocal advocates, however, are few.

It’ll take more than a few elected officials to get such a sweeping policy over the finish line. For example, Novogratz also got into a recent social media spat with Senator Elizabeth Warren, the famed Bitcoin critic.

Although the anti-crypto faction in US legislature got substantially weaker in the last election, it isn’t defeated yet. Even Trump’s own party might not unite in support of the bill.

Polymarket odds, for their part, concur with Novogratz’s bearish predictions. This decentralized prediction market recently gained credibility after successfully forecasting Trump’s victory, and it claims the US Bitcoin Reserve only has a 33% chance of happening. Granted, the only active bet is whether Trump will fulfill his promise within the first 100 days, not his entire term.

Ultimately, there still is a decent chance that Trump will successfully pass a Bitcoin Reserve bill sometime in his four-year term. Lummis’ bill already has bipartisan support, and the US electorate is becoming more crypto-friendly.

Several Democrats may vote in favor, or the midterms could see new pro-crypto wins. Nonetheless, it might take a while.

Tesla, the electric vehicle giant, now holds Bitcoin worth over $1 billion, fueled by the current bull market. In February 2021, Tesla initially invested in Bitcoin, making headlines with one of the largest institutional buys in the cryptocurrency space.

Although the automaker sold part of its holdings, it retained a substantial stake in Bitcoin. Today, Tesla’s crypto investment has paid off, with a reported profit of $495 million.

Tesla’s Initial Move into Bitcoin

Tesla’s entry into the Bitcoin market, with the purchase of 43,200 Bitcoins, represented a bold step for corporate finance. In February 2021, the company announced its $1.5 billion Bitcoin purchase, aiming to diversify its cash holdings.

This move, aligned with CEO Elon Musk’s support for digital assets, sent Bitcoin’s price soaring. Together, Musk’s Tesla and Space X ventures hold a total of $1.73 billion in Bitcoin at the time of writing.

Following this initial purchase, Tesla sold part of its Bitcoin holdings, liquidating 10% of its holdings in May 2021. By July 2022, it was announced that they had sold more of their holdings, bringing the company’s total down to 10,725 BTC.

However, the company kept a significant portion of its holdings, showing long-term confidence in the asset. Today, this choice has proven highly profitable as Bitcoin’s value surges.

Bitcoin’s recent price rally, largely driven by increased institutional interest, has boosted corporate crypto holdings. With Bitcoin prices near all-time highs, Tesla’s remaining holdings also provide a hedge against inflation and economic uncertainty. This surge reinforces the value of corporate crypto investments in today’s economy.

Tesla’s Influence on the Broader Crypto Market

Tesla’s investment has strengthened its finances and influenced the broader crypto market. Many saw Tesla’s move as validation for corporate crypto adoption, encouraging other companies to explore similar strategies.

Additionally, Tesla’s involvement has increased public awareness and acceptance of Bitcoin. In the same year that the company made the purchase, it started accepting payment in BTC for its vehicles before suspending the option sometime later. This move has also positioned Tesla as a trendsetter, especially for companies eyeing the crypto market.

“Imagine if Tesla never stopped accepting Bitcoin as payment… they would’ve made BILLIONS on their Bitcoin holdings. One of the biggest mistakes in recent history,” commented one enthusiast on X.

Tesla’s Bitcoin profits highlight the value of digital assets in corporate finance. As Bitcoin’s role as a digital store of value grows, more companies may add crypto to their reserves. This recent Bitcoin bull run validates that strategy, especially for companies looking to protect against inflation.

Tesla’s decision strengthens Bitcoin’s case as a corporate asset, especially as more companies follow suit. Though the market remains volatile, Tesla’s continued holding of Bitcoin signals long-term confidence in the asset. With each new company investing in Bitcoin, corporate support may help sustain cryptocurrency’s momentum.