Key Takeaways
Peter Schiff criticized investments in Bitcoin treasury stocks as more absurd than buying Bitcoin itself.
Schiff advises investing in companies with actual business models rather than those solely acquiring Bitcoin.
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For Peter Schiff, Bitcoin is bad. But Bitcoin proxy stocks are even worse. The gold champion and longtime Bitcoin critic has criticized the idea of buying shares in public companies that exist solely to hold Bitcoin, calling it a “ridiculous” way to gain crypto exposure.
“If you want to buy Bitcoin, then buy Bitcoin,” Schiff wrote on X on Wednesday. “If you want to invest in the stock market, buy a company with an actual business.”
Pierre Rochard, CEO of The Bitcoin Bond Company and former VP at Riot Platforms, defended the practice, arguing that Bitcoin-native firms could create genuine value for a range of market participants.
“Tranching up bitcoin’s risk-return is a real business. Some people want less volatility, others want more,” Rochard commented. “Financial engineering with securitization creates real value.”
Bitcoin treasury companies are on the rise. Tether, SoftBank, and Cantor Fitzgerald recently launched Twenty One Capital, aiming to become a top corporate Bitcoin holder.
Nakamoto Holdings, led by Bitcoin Inc. CEO David Bailey, and Strive Asset Management, backed by Vivek Ramaswamy, also announced ventures focused on acquiring and managing Bitcoin at scale.
Supporters of the movement believe Bitcoin treasury stocks offer a practical solution for investors facing regulatory barriers.
Commenting on Schiff’s post, one UK-based market participant noted that direct exposure to Bitcoin is often not possible in retirement accounts, particularly in the UK, where Bitcoin ETFs are less accessible.
Not always possible to get exposure to Bitcoin directly in retirement funds, particulary here in the UK where we don’t have access to the Bitcoin ETFs. Bitcoin treasury stocks are the easiest way to get exposure on digital gold, while avoiding regulatory red-tape.
— AssetMarketCap (@AssetMarketCap) May 14, 2025
Critics, however, call these companies “this cycle’s shitcoins.”
In a May 13 statement, pseudonymous investor Stack Hodler warned against Bitcoin treasury companies that create shares out of thin air to lure investors chasing outperformance without offering any underlying utility.
“Many of these businesses will inevitably be forced to dump their stacks one day as the fast capital that buys them now realizes they’d be better off simply holding cold-stored Bitcoin,” the analyst said.
“Businesses that create economic value via products and services, and then store their profits in Bitcoin, are what will bring lasting value to the Bitcoin network,” he added.
“I’m referring mostly to the copycats that are popping up at an accelerating pace. They are trying to draft off MSTR’s success similar to how shitcoins drafted off BTC’s success,” the investor said.
Businesses are the top buyers of Bitcoin in 2025, River report finds
A new report from River shows that businesses are the largest net buyers of Bitcoin so far this year, with MicroStrategy leading the charge. The company accounts for 77% of the growth in corporate Bitcoin holdings.
Businesses have added a total of 157,000 BTC, followed by funds and ETFs with 49,000 BTC, and governments with 19,000 BTC. In contrast, individual investors have collectively sold around 247,000 BTC, according to the report.
Despite the sales, individuals still hold over $14 million worth of Bitcoin, which amounts to more than 69% of the total circulating supply.
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