MicroStrategy's Bitcoin-Buying Power Dwindles, Says Peter Schiff

MicroStrategy's Bitcoin-buying power is dwindling, according to Peter Schiff. In a recent podcast, Schiff argued that the company has lost its ability to issue preferred stock, which previously funded its Bitcoin purchases. This channel was key to MicroStrategy's ability to buy BTC, but now it's gone. The company has had to rely on other funding sources, including common stock sales.

According to Schiff, MicroStrategy's weekly buybacks and the recent rally in Bitcoin have contributed to a recovery in the price of STRC, which has risen to around $99.4. However, Schiff believes that this rebound has not reopened the company's key funding route. He expects Bitcoin to roll over once tech stocks pull back, which could further impact MicroStrategy's ability to buy more BTC.

CEO Phong Le previously attributed the decline in STRC's price to unexpected leverage, while Executive Chairman Michael Saylor pointed to calmer trading in the stock. Saylor noted that STRC's 30-day historical volatility had dropped to 9%, below the 10% reading for the SPDR S&P 500 ETF (SPY).