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Schiff Roasts “Egg Man” Saylor Over Bitcoin Plans

Schiff Roasts “Egg Man” Saylor Over Bitcoin Plans

DailycoinDailycoin2024/11/01 19:00
By:Dailycoin
  • MicroStrategy is the leading public company investor in Bitcoin.
  • The company unveiled a new $42B strategy to buy more BTC.
  • Peter Schiff warns of the dangers of corning the market.

MicroStrategy co-founder Michael Saylor, once a Bitcoin skeptic, made a sharp pivot in 2020, embracing BTC as the ultimate asset and inflation hedge. Since then, he’s been one of Bitcoin’s most vocal champions, positioning it as the world’s most valuable financial asset.

With its Bitcoin treasury strategy, MicroStrategy has built a hefty war chest of 252,220 BTC, worth around $17.5 billion. If that wasn’t enough, the company is far from being done buying BTC, and it is announcing a fresh $42 billion acquisition plan. But gold enthusiast Peter Schiff wasn’t exactly cheering, instead, he took a jab at the plan with a fable about the egg man.

Saylor Is the “Egg Man”

After MicroStrategy unveiled its new $42 billion plan to buy more Bitcoin, Schiff wasted no time weighing in, using a playful parable to throw shade on Saylor’s BTC obsession. Schiff’s tale centers on the overconfident “egg man” who couldn’t resist betting big on egg futures.

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In Schiff’s story, a client is convinced that egg prices are going to the moon, so he calls up his broker to buy egg futures. With each price jump, his confidence grows, and he keeps doubling down, snapping up more and more contracts. 

Sitting on millions of egg futures, he finally decides to sell and cash in big. However, when he asked his broker to cash out, the broker responded, “Sell to whom? You’re the Egg Man!”

Even so, Schiff’s cautionary tale falls on deaf ears for Saylor. The MicroStrategy chair is adamant that the real endgame is to amass as much Bitcoin as possible and hold it for the long haul. Selling for fiat isn’t part of his plan, and he urges all Bitcoiners to embrace the same mindset.

You do not sell your #Bitcoin .

— Michael Saylor⚡️ (@saylor) February 27, 2024

The Great Bitcoin Buy-Up

In its quest to acquire even more Bitcoin, MicroStrategy has revealed an ambitious new strategy called the “21/21 Plan.” The goal is to raise a whopping $42 billion in capital over the next three years to fuel more BTC buys. 

This would involve raising $21 billion by selling shares in the secondary market at the current price, while the other half will come from issuing new fixed-income securities.

MicroStrategy announces $42 billion capital plan including $21 billion ATM equity offering and a target of raising $21 billion in fixed-income securities. Join us at 5pm ET as we discuss our quarterly results and #Bitcoin Treasury Company plans. $MSTR https://t.co/eXYELbN1Dm

— Michael Saylor⚡️ (@saylor) October 30, 2024

For those wondering, fixed-income securities mean MicroStrategy will sell company bonds to investors, who’ll receive a fixed interest return and their original investment back upon maturity.

While all investments come with their fair share of risks, it’s clear that MicroStrategy is all in on Bitcoin, placing a massive bet that the “number(s) go up” (NGU) forever.

On the Flipside

  • MicroStrategy‘s current BTC holding equates to 1.3% of the circulating supply.
  • MicroStrategy may struggle to repay the principal on its fixed-income securities.
  • Unlike eggs, BTC does not face storage or degradation risks.

Why This Matters

While Schiff’s egg fable paints Saylor as a market-cornering zealot, the real story may be how one company’s ambitious Bitcoin strategy is stress-testing traditional assumptions about corporate finance and risk management .

Saylor clarifies his self-custody stance.
Saylor U-Turns Bitcoin Custody Comments Following Backlash

A British business comes forward as Satoshi, but doubts swirl.
Satoshi Unveiled? Stephen Mollah Is the Latest to Lay Claim

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Bitget Academy2024/11/19 08:22