A known economist once again criticized the debt-fueled Bitcoin acquisition strategy of Michael Saylor’s Strategy Inc. despite the company’s decreasing share price.Leading economist Peter Schiff argued that Strategy Inc.’s decision to go on a buying spree of the firstborn cryptocurrency has led to shareholder dilution, reducing the premium on the firm’s BTC holdings.BTC Premium Down By 85%In a recent X post, Schiff gave his take on the Saylor-led company’s Bitcoin investment strategy while the firm’s share price and Net Asset Value (NAV) premium decreased.The prominent economist noted that Strategy Inc.’s stock has underperformed despite leveraging on Bitcoin buying.“Today, Saylor bragged about his leveraged Bitcoin buys generating a BTC yield of 6.9% so far in 2025. However, the share price of $MSTR is down 6% in 2025,” Schiff said in a post.The economist added that the massive dilution has diminished shareholder value, “causing the premium to its crypto holdings to collapse by 85%.”Today, @saylor bragged about his leveraged Bitcoin buys generating a BTC yield of 6.9% so far in 2025. However, the share price of $MSTR is down 6% in 2025, while massive dilution has destroyed shareholder value, causing the premium to its Bitcoin holdings to collapse by 85%.— Peter Schiff (@PeterSchiff) February 24, 2025A Bitcoin hobbyist commented on Schiff’s post saying he agrees with the economist about not being sold with Strategy Inc. However, the crypto investor disputed the 85% premium collapse, saying the “claim seems off.”“With 499,096 BTC at ~$97,514 each, that’s $48.7 billion. MSTR’s stock at, say, $297.50 today with ~290 million shares is a market cap of $86.3 billion—a 77% premium. Even at recent highs like 90%, an 85% drop would leave it near 13%, or $55 billion—way below current levels. The premium’s down, not demolished,” the Bitcoin hobbyist explained.Skeptic On The Debt-Fueled StrategyOne of the reasons why Schiff did not buy into the Bitcoin acquisition of Strategy, Inc. is being funded by debt. The economist is at loggerhead with Saylor’s strategy of financing the BTC acquisitions through convertible debt.“It looks like the new $MSTR convertible notes aren’t going over too well. Shares are down 4.5% today, even with Bitcoin up 2.5%,” Schiff said.Schiff has been very critical of the debt-driven Bitcoin purchase, emphasizing that too much debt could be dangerous once the BTC price drops.“When MSTR trades at a discount to its holdings, the game is over, as selling MSTR shares to buy crypto will produce a negative Bitcoin yield,” the economist explained.Earlier, Schiff cited that the repayment of the firm’s debts might cause trouble to Strategy, Inc. when BTC price declines.BTC Acquisition StrategyStrategy Inc. has received heavy criticism for its BTC acquisition master plan. However, the firm does not mind its critics and continues to increase its digital currency holdings.In a statement, Strategy Inc. said it recently bought 20,356 Bitcoins worth around $1.99 billion, increasing its BTC holdings to 478,740 coins with a total value of $44 billion.Featured image from Pexels, chart from TradingView