Peter Schiff Slams MicroStrategy’s 2025 Performance, Questions S&P 500 Viability
Prominent economist and gold advocate Peter Schiff has renewed his criticism of MicroStrategy (MSTR) and its Bitcoin-centric corporate treasury model.
In a recent post on X, Schiff argued that if MicroStrategy had been part of the benchmark index in 2025, its 47.5% decline would have ranked it among the year's worst performers.
"Strategy isn’t in the S&P 500. But if it were, its 47.5% decline in 2025 would make it the 6th worst-performing stock in the index," Schiff posted. He further claimed that the company’s aggressive accumulation of Bitcoin has "destroyed shareholder value," challenging Michael Saylor’s assertion that Bitcoin is the ultimate corporate reserve asset.
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2025 Market Context: A Strong Year with Notable Laggards
Schiff’s critique comes despite a generally bullish year for U.S. equities. While the broader market thrived, individual stock performance remained highly bifurcated.
- S&P 500 Performance: The index ended 2025 up 17.3%, following impressive gains of 23.3% in 2024 and 24.2% in 2023.
- The Bottom of the Pack: Despite the index's success, several large-cap companies faced significant drawdowns:
Sarepta Therapeutics: Plummeted over 80% following regulatory setbacks.
3 Fiserv: Dropped roughly 70% due to missed earnings and lowered guidance.
The Trade Desk: Declined 68% amid rising tech competition and slowing growth.
4 Other Notable Declines: Deckers Outdoor, Gartner, and Lululemon all saw losses exceeding 50%.
MicroStrategy’s Volatile 2025: From Peaks to Valleys
Although MicroStrategy is not an S&P 500 member, its massive market cap and high-profile Bitcoin correlation make it a frequent point of comparison for institutional investors.
| Metric | 2025 Performance Details |
| Annual High | $457.22 (July 16, 2025) |
| Annual Low | $151.42 (December 31, 2025) |
| Year-End Close | $151.95 |
| Total 2025 Decline | ~49.35% |
By the end of the year, MSTR was the worst-performing stock in the Nasdaq-100. However, the company’s underlying Bitcoin holdings told a different story. As of late December 2025, MicroStrategy held 672,497 BTC at an average cost of $75,000.
Executive Chairman Michael Saylor remains undeterred, reporting a "Bitcoin Yield" of 23.2% for the year, even as the stock price struggled to decouple from the crypto market's late-year pullback.
The S&P 500 Hurdle: Why MSTR Remains Excluded
The debate over MicroStrategy’s inclusion in the S&P 500 persists. While the company met quantitative requirements—such as market cap and profitability—in late 2025, the S&P Index Committee has shown continued hesitation.
Primary Barriers to Entry:
Operating vs. Investment Vehicle: The committee prioritizes "operating businesses" (companies that sell products or services). Analysts argue MicroStrategy now functions more like a closed-end fund or a Bitcoin proxy, a structure explicitly ineligible for the index.- Treasury Dominance: There is a reluctance to include firms whose valuations are almost entirely driven by treasury assets rather than core business revenue.
Volatility Concerns: While a steep decline (like MSTR's 2025 drop) doesn't automatically disqualify a company, the committee looks for sustainability and business fundamental stability—areas where MSTR's Bitcoin-heavy balance sheet creates unique challenges.
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