In a twist rich with irony, longtime Bitcoin critic Peter Schiff has offered a rare (albeit sarcastic) concession: Bitcoin might finally have a real-world use. The catalyst? Investment manager Jim Chanos reportedly used Bitcoin to hedge a short position against MicroStrategy (MSTR)—the same company that’s become a corporate poster child for BTC adoption under Executive Chairman Michael Saylor.
For Schiff, who has spent over a decade arguing that Bitcoin is a speculative bubble with no intrinsic value, this moment was too good to pass up. In a mocking post on X (formerly Twitter), Schiff jested that he had been wrong all along—Bitcoin does have a use case: insulating investors from the financial fallout of MicroStrategy’s Bitcoin-heavy business model.
A Hedge Against Saylor?
The backstory is as layered as Schiff’s sarcasm. MicroStrategy, under Saylor’s direction, now holds close to 570,000 BTC. That massive stash has led investors and analysts alike to treat MSTR stock as something of a leveraged Bitcoin ETF—albeit with the risk of an underlying tech firm attached.
Enter Jim Chanos, a well-known short-seller famous for calling out overvalued companies. His move? Shorting MSTR stock while holding Bitcoin—a strategy that suggests he believes the company is overvalued even though the cryptocurrency it holds might continue to rise.
Peter Schiff seized on this as a moment of poetic justice. He quipped that Saylor has inadvertently given Bitcoin its most ironic utility: as a shield against his own company’s potential stock collapse. Schiff framed this as Bitcoin’s “first real-world use case,” though he was clearly more amused than impressed.
Chanos Calls Out Overvaluation
Chanos explained his reasoning: investors are paying far too much for each dollar of BTC exposure through MSTR shares. In his words, “Investors are paying $3 of stock price to gain $1 of Bitcoin exposure.” His point is that if you’re bullish on Bitcoin, there are cheaper and more direct ways to gain exposure—without paying a hefty corporate markup.
Meanwhile, MicroStrategy hasn’t slowed down. It recently added another 13,390 BTC to its balance sheet in a $1.34 billion purchase, funded in part through borrowed capital. This has raised eyebrows even among some Bitcoin supporters, given the increased financial risk if Bitcoin’s price retraces.
Schiff echoed these concerns, suggesting that MSTR has strayed far from its origins as a software company. “If you want Bitcoin, buy Bitcoin,” Schiff said. “If you want to invest in companies, choose one with a real business.”
Saylor Gets Support from Crypto Advocates
Despite Schiff’s jabs, not everyone sees Saylor’s strategy as reckless. Pro-XRP attorney John Deaton likened Saylor’s approach to Warren Buffett’s playbook with Berkshire Hathaway—making long-term, conviction-based bets. Deaton even speculated that Saylor’s goal may be to accumulate up to 5% of Bitcoin’s total circulating supply.
BTC and MSTR on the Rise—For Now
While Schiff and Chanos criticize from the sidelines, the market has remained largely bullish. MSTR stock has surged nearly 40% in 2025, closely mirroring Bitcoin’s price action. Analysts warn, however, that this performance is almost entirely tied to BTC and not the company’s core operations.
The broader Bitcoin market has entered a tight consolidation phase, with prices ranging between $100,678 and $105,700. Still, signs point to an incoming breakout. On-chain data from Glassnode reveals that Bitcoin’s realized cap—a metric reflecting the price at which coins were last moved—has jumped by $30 billion since April 20. That kind of capital inflow is often a prelude to bullish momentum.
Meanwhile, corporate interest continues to flow in. Metaplanet and a Tether-backed company, Twenty One Shares, recently made notable Bitcoin acquisitions, fueling hopes that institutional demand will push BTC to a new all-time high.
The Bottom Line
Schiff’s sarcastic concession reveals just how surreal the world of crypto has become. What started as a satirical jab at Saylor and Chanos might actually hint at a deeper truth: Bitcoin is becoming increasingly integrated into diverse investment strategies—even among its critics. Whether or not one agrees with Schiff’s tone, the market’s message is loud and clear—Bitcoin isn’t going away, and even its skeptics are being forced to reckon with its growing role in global finance.
