Outspoken Bitcoin critic Peter Schiff has launched a two-pronged attack, predicting investor lawsuits over Trump-linked crypto ventures and accusing Strategy (formerly MicroStrategy) of operating a “mid-cycle Ponzi” after its recent Bitcoin sale. In a post on X on July 8, Schiff claimed the Trump family made billions from public buyers of Trump-affiliated crypto assets and stocks, gains he said came directly from buyer losses rather than new value creation. He suggested some buyers may have viewed purchases as disguised political payments, while others—whom he called “unsophisticated Trump supporters”—expected genuine returns. Schiff forecast that the Trump Organization could face lawsuits from those seeking compensation, though he provided no evidence of wrongdoing. He further speculated that Democrats might use extreme investor-loss cases in future campaign ads.
Simultaneously, Schiff targeted Strategy’s revised Bitcoin treasury model. After the firm sold 3,588 BTC for roughly $216 million to fund dividends on its Digital Credit securities, Schiff labeled the structure a “mid-cycle Ponzi.” He argued that Strategy had shifted from its earlier approach of issuing stock and debt to buy Bitcoin and now relies on selling BTC to cover interest, dividends, and potential buybacks. The sale, executed at an average price of about $60,000 against a purchase cost of around $75,000, resulted in a loss of roughly $15,000 per coin. Strategy still holds 843,775 BTC and $2.55 billion in dollar reserves after the sale.
On his podcast the following day, Schiff insisted that Bitcoiners are “delusional” or “in denial” about Strategy’s changing role. He contended that the company’s relentless buying had been the real floor under Bitcoin’s price, and that selling—especially at a loss—shatters that support. “It’s not just that he’s not buying or that he’s selling; it’s the psychology,” Schiff said, adding that Michael Saylor might eventually sell much more, or even all, of the company’s Bitcoin. He cited the declining price of Strategy’s preferred shares as a sign of evaporating confidence.
Other analysts interpreted the sale differently. Grayscale’s head of research, Zach Pandl, argued that the move could strengthen Strategy’s financing structure, noting its $53 billion BTC stack against $7 billion in debt and ample cash reserves. HashKey Group Senior Researcher Tim Sun suggested a slower Strategy could help Bitcoin build a healthier, organic price floor. Bitwise’s Matt Hougan predicted that institutional players like Morgan Stanley and Wells Fargo will become the main buying force in the next cycle, reducing Strategy’s influence. Saylor has defended limited sales, emphasizing the company aims to avoid becoming a net seller and will fit any future sale into a wider capital plan.
