Economist Peter Schiff warned Thursday of a severe bear market for Michael Saylor-led Strategy Inc. (NASDAQ: MSTR) and companies mimicking its Bitcoin (CRYPTO: BTC) treasury play.

In an X post, Schiff questioned the viability of companies with large Bitcoin reserves.

“While so many companies have been busy copying Saylor’s harebrained business strategy, few have noticed that MSTR is down 45% from its Nov. 2024 high,” Schiff said.

He predicted a “brutal” bear market for Bitcoin treasury companies, doubting that any, including Strategy, would survive.

See Also: Wall Street, Bitcoin Drop As Dollar, Treasury Yields Rebound: What’s Moving Markets Thursday?

Schiff’s argument comes amid a sharp pullback in Bitcoin’s price, which has dragged down shares of Strategy and other BTC hoarding companies, such as Riot Platforms Inc. (NASDAQ: RIOT) and MARA Holdings Inc. (NASDAQ: MARA).

MSTR has indeed fallen 45% from its November 2024 high of $543, but on a year-over-year basis, Saylor’s company still delivered an impressive return of 81%, and so did Riot Platforms.

Schiff’s prediction contradicts Saylor’s earlier assertions. During the company’s second-quarter earnings call, Saylor had expressed confidence in the company’s viability, asserting that it could endure an 80% BTC drawdown and remain resilient in a bear market.

His confidence stemmed from the company’s pivot to a “robust” perpetual preferred stock strategy, which has no maturity date and retains the initial capital invested.

Earlier this month, Saylor said that Bitcoin treasury companies are at the forefront of a financial rebuild, leveraging “digital capital” and “digital intelligence.” He urged everyone to ignore the “critics and the whiners.”