P
eter Schiff has challenged Michael Saylor's comparison of MicroStrategy's debt-financed Bitcoin buying strategy to investing in Manhattan real estate. In an X post, Schiff argued that unlike real estate which generates rents to service and repay debt, Bitcoin doesn't produce any income to make interest or principal payments.

    Schiff's view was countered by Spencer Hakimian, founder of Tolou Capital Management, who pointed out that Bitcoin has no expenses or maintenance costs like real estate. However, Schiff responded that rental income from real estate typically exceeds its expenses. He also noted that the Manhattan real estate market is currently experiencing a 13.1% increase in median monthly rent since pre-pandemic values.

    Saylor had previously defended MicroStrategy's strategy by equating it to developers in Manhattan issuing more debt to develop more real estate when its value increases, and then using high returns from Bitcoin to buy more Bitcoin.