Peter Schiff has warned that Michael Saylor may be forced to sell significantly more Bitcoin (BTC) and MSTR shares as Strategy tries to push its STRC preferred stock back toward its $100 target.
"Despite selling Bitcoin and $MSTR to raise cash and buy back $STRC, STRC is still trading below $95," Schiff said in a post on X on Thursday. He added that Saylor is going to have to sell a lot more Bitcoin and discounted common stock to raise the price of STRC to $100. "That's bad news for Bitcoin and MSTR. Sell both!"
The comments follow Strategy's latest sale of another 1,690 BTC for approximately $108.6 million last week, with proceeds used to repurchase about 1.15 million STRC shares. Strategy also sold roughly $653 million worth of MSTR common stock to strengthen its dollar reserves.
Schiff, a longtime Bitcoin critic and gold advocate, argued that Strategy's attempts to support STRC are coming at the expense of MSTR common shareholders and Bitcoin exposure. On Aug. 10, he said the latest Bitcoin sale was part of an increasingly problematic cycle, writing that "MSTR is consistently selling Bitcoin now to buy dollars, as lenders don't have confidence in Bitcoin as collateral."
Saylor has described STRC as a core part of the company's "digital credit" strategy and has said Strategy wants to make the security more liquid and stable. During a July earnings call, Saylor said the company was "laser focused on Stretch," Strategy's name for STRC.
Schiff, however, sees the recent sales as evidence that the model is under pressure. "Since even the prospect of those sales will cause Bitcoin to fall, he's going to have to sell a lot more Bitcoin than he thinks to raise the $5 billion," Schiff wrote on Aug. 1. He previously called STRC "an albatross around MSTR's neck," arguing that the preferred stock would force Strategy into continued Bitcoin sales and common-stock dilution.
