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Peter Schiff he once again sounded the alarm, this time warning that the companies that use Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: ETH) as corporate treasury strategies are ultimately doomed.
What Happened: Speaking on Schwab Network, Schiff argued that Strategy (NASDAQ: MSTR) Bitcoin’s leveraged model is structurally unsound.
He said that the company does not generate any significant profits, piles on losses, and survives only by issuing debt or new equity to buy more Bitcoin, an asset that does not give any liquidity.
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According to Schiff, the moment Strategy’s stock trades below the value of its Bitcoin holdings, the entire “yield line” breaks.
At that point, the firm can no longer raise new capital, triggering a debt-driven disruption that would force a BTC selloff and potentially accelerate a broader market crash.
He also claimed that Bitcoin’s inability to rally despite a wave of bullish catalysts, spot ETFs, a pro-crypto president, and strong political support, shows that the market is exhausted.
In his view, the whales used the hype to exit while retail investors absorbed the peak.
As a result, Schiff warns that today’s market is dominated by leveraged and weak-handed buyers, a setup he believes could lead to a rapid collapse unless the government intervenes.
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Why It’s Important: Schiff compared the current crypto landscape to the speculative bubbles of the past, arguing that the digital asset boom is bigger than the dot-com mania and “built on nothing”.
In contrast, he says AI is a real but overheated sector that will undergo a shake-up before reshaping the global economy.
He predicts that most crypto assets will eventually go to zero, with tokenized gold emerging as the only sustainable blockchain application.
Schiff concluded by saying that any corporation that runs a treasury model based on Bitcoin or Ethereum will eventually end up insolvent because their business depends entirely on speculative enthusiasm rather than a viable revenue engine.
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This article Peter Schiff Says Bitcoin, Ethereum Treasury Companies Have ‘No Viable Business Model’ originally appeared on Benzinga.com
