Peter Schiff Claims Strategy Bitcoin Math Has Turned Against MSTR

TLDR

• Peter Schiff said Strategy’s Bitcoin buying model no longer works because current MSTR share sales occur at a discount.
• Schiff argued that Strategy’s latest 1,550 BTC purchase reduced Bitcoin per share and created “negative Bitcoin yield.”
• He claimed past MSTR sales helped shareholders because Strategy sold stock at a premium to its Bitcoin holdings.
• Schiff said pressure on STRC could force Strategy to raise dividends if the preferred stock fails to return to par.
• He argued that Strategy should sell Bitcoin and buy back discounted MSTR stock instead of issuing more shares.

Peter Schiff has renewed his attack on Strategy’s Bitcoin model after the firm’s latest purchase. He said the company’s former premium-driven approach no longer works under current market conditions. His comments target share issuance, debt pressure, and Bitcoin-per-share dilution.

Strategy Bitcoin Plan Faces Fresh Schiff Criticism

Schiff said Strategy once benefited from a stock premium over its Bitcoin holdings. That premium allowed Michael Saylor’s company to raise capital without hurting existing holders.

The model worked when MSTR traded above its net asset value. Therefore, new share sales could increase Bitcoin exposure per share.

Schiff argued that the setup has now changed.

That shift matters because discounted issuance changes the math. In his view, Strategy now sells more ownership than the Bitcoin it adds.

Strategy announced in early June that it bought 1,550 BTC for $101 million. Bitcoin supporters welcomed the purchase, but Schiff framed it as weak for shareholders.

He said the deal reduced Bitcoin per share instead of lifting it. Therefore, he called the purchase a case of “negative Bitcoin yield.”

Schiff also said the position quickly moved against the company after the market pulled back. He claimed Strategy was down more than $6 million on that purchase.

Discounted MSTR Sales Raise Debt Vehicle Questions

Schiff linked the latest Bitcoin purchase to pressure around Strategy’s financing tools. He pointed to weaker confidence in STRC, the company’s preferred stock vehicle.

He said Strategy may need to raise the dividend if STRC fails to return to par. That would increase financing pressure while the company keeps buying Bitcoin.

Schiff said the rational move would look different under current pricing.

That claim challenges the company’s long-running treasury playbook. Saylor has continued to present Bitcoin accumulation as Strategy’s main corporate policy.

Schiff also warned that MSTR may offer poor exposure to Bitcoin bulls. He said holding the stock remains the “worst way” to bet on Bitcoin.

He cited a poll response from Bitcoin supporters to question their view of MSTR risk.

His latest comments followed Strategy’s $101 million Bitcoin purchase and debate over dilution. The dispute now centers on whether new financing still benefits MSTR holders.

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