Bitcoin Critic Peter Schiff Warns of Deteriorating Returns for MSTR Stock

Notable economist and Bitcoin critic Peter Schiff has once again taken aim at Michael Saylor’s Strategy, providing a cautionary outlook on the MSTR stock. As tensions mount around MSCI’s decision on identifying digital asset treasury companies as investment funds, analysts are closely watching the implications this could have for Saylor’s initiative. Schiff has made striking claims about the likelihood of deteriorating stock performance, especially true as the cryptocurrency market remains volatile.

Schiff’s Dire Prognosis for MSTR Stock

In a recent X post, Schiff indicated that the MSTR stock could face even graver losses in 2026, further scrutinizing Strategy’s preferred stock (STRC). The stock currently boasts a monthly dividend payout of 11%, a move Schiff views as desperate. With Strategy allegedly struggling to maintain their initial 10% dividend payout, this tactics suggest to Schiff that STRC is essentially "junk." These developments lead him to declare a forecast of worse returns for MSTR compared to last year’s significantly low performance.

Historical Performance of MSTR Stock

In 2025, MSTR concluded the year with a staggering 50% loss from its earlier peak above $400. The stock’s sharp decline was particularly pronounced during the latter half of the year, coinciding with Bitcoin’s fall below $100,000 in November. Schiff posits that this year could mirror or exceed those downturns as he anticipates Bitcoin prices to drop even more severely than last year, increasing the downward momentum on MSTR shares. He argues that the company’s focus on Bitcoin has been detrimental to shareholder value, offering a bleak picture for the stock’s future.

MSCI’s Crucial Decision

The forthcoming MSCI decision on January 15 has significant implications for Strategy, as the index provider will determine if digital asset treasury firms qualify as investment funds. In this context, Saylor’s company risks potential delisting from MSCI’s global indices, which would undoubtedly affect MSTR stock performance. The close of the consultation period yesterday has intensified speculation on the outcome, with Schiff’s concerns ringing loud and clear.

Potential Impact of MSCI Delisting

According to analysts, should MSCI opt to exclude digital asset treasury companies, Strategy could face approximately $2.8 billion in outflows. This forecast has escalated apprehensions around MSTR stock, especially in light of JPMorgan’s assessment. The prevailing sentiment among crypto traders leans toward the belief that Strategy may be delisted from the MSCI index, with current data from Polymarket indicating a 77% probability of such an event occurring by March 31.

Implications for Investors

For investors keeping a close eye on the crypto market, Schiff’s commentary underscores the potential risks associated with investing in MSTR stock. His assessment not only highlights the financial struggles of Strategy but also raises broader concerns about the sustainability of Bitcoin investments under current market conditions. As the volatility in cryptocurrency persists, MSTR’s weakened performance raises critical questions for existing and potential shareholders alike.

Conclusion

As Peter Schiff continues to critique Michael Saylor’s strategic direction for MSTR, the looming MSCI decision adds another layer of uncertainty to the landscape. The anticipated performance issues surrounding MSTR stock serve as a cautionary tale for investors navigating the turbulent waters of cryptocurrency. With indicators suggesting potential significant outflows and deteriorating stock performance, stakeholders must remain vigilant and consider these warnings as part of their strategic investment decisions moving forward.