Peter Schiff Says Bitcoin, Ethereum Treasury Companies Have ‘No Viable Business Model’

November 27, 2025

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Peter Schiff is once again sounding the alarm, this time warning that companies using Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: ETH) as corporate treasury strategies are ultimately doomed.

What Happened: Speaking on Schwab Network, Schiff argued that Strategy’s (NASDAQ:MSTR) Bitcoin-leveraged model is structurally unsound.

He said the company generates no meaningful earnings, piles on losses, and survives only by issuing new debt or equity to buy more Bitcoin, an asset that yields no cash flow.

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According to Schiff, the moment Strategy’s stock trades below the value of its Bitcoin holdings, the entire “yield loop” breaks.

At that point, the firm can no longer raise fresh capital, triggering a debt-driven unwind that forces BTC sales and potentially accelerates a broader market crash.

He also claimed Bitcoin’s inability to rally despite a wave of bullish catalysts, spot ETFs, a crypto-friendly president, and heavy political support, shows the market is exhausted.

In his view, whales used the hype to exit while retail investors absorbed the top.

As a result, Schiff warns that today’s market is dominated by leveraged, weak-hand buyers, a setup he believes could lead to a rapid collapse unless the government intervenes.

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Why It Matters: Schiff compared the current crypto landscape to past speculative bubbles, arguing that the digital-asset boom is larger than the dot-com mania and “built on nothing.”

By contrast, he says AI is a real but overheated sector that will undergo a shakeout before reshaping the global economy.

He predicts most crypto assets will ultimately go to zero, with tokenized gold emerging as the only sustainable blockchain application.

Schiff concluded by saying that every corporation running a Bitcoin- or Ethereum-based treasury model will eventually end up insolvent because their business hinges entirely on speculative enthusiasm rather than a viable revenue engine.

Image: Shutterstock

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This article Peter Schiff Says Bitcoin, Ethereum Treasury Companies Have ‘No Viable Business Model’ originally appeared on Benzinga.com

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