Peter Schiff, CEO of Euro Pacific Capital and a longtime Bitcoin critic, renewed his attack on Strategy’s Bitcoin treasury model after the company bought 1,550 BTC for approximately $101 million. He argued that the purchase reduced the Bitcoin backing per share, effectively creating a negative Bitcoin yield for shareholders. Schiff contends that the company's earlier purchases were different: when STRC traded at a premium to its net asset value (NAV), sales of new shares raised capital without diluting Bitcoin exposure. Now, with the stock trading below NAV, more shares must be sold to raise the same dollar amount, leading to a decline in Bitcoin per share.
Schiff pointed out that Bitcoin’s price fell after the acquisition, leaving the new coins at an unrealized loss of over $6 million within a short period. He further challenged the sustainability of Strategy’s financing model, warning that weakening demand for capital-raising vehicles could pressure management. According to Schiff, buying back discounted shares would be a more logical use of capital under current conditions.
His criticism intensified as STRC, the preferred stock Strategy issues to fund Bitcoin purchases, dropped to about $93.50—below its $100 launch price. Investors who bought at the offering price are sitting on losses of roughly 6.5%. Schiff also questioned Michael Saylor’s promotion of STRC as a “safe for retirees” product, noting that the yield had climbed above 12% amid the price decline. The ongoing exchange reignites the debate over corporate Bitcoin treasuries and whether issuing stock at a discount ultimately benefits shareholders.
