MicroStrategy's Bitcoin Yield Plummets 66% After Share Sale

Peter Schiff is once again criticizing Michael Saylor's strategy at MicroStrategy. The company recently sold $544.5 million worth of MSTR shares without buying any additional Bitcoin, which has led to a significant drop in the company's Bitcoin Yield.

The Bitcoin Yield tracks how much Bitcoin sits behind each MSTR share. When new shares are issued without corresponding Bitcoin purchases, the yield decreases. In this case, MicroStrategy sold 5.429 million shares and raised $544.5 million, but did not buy any additional Bitcoin.

As a result, the company's Bitcoin Yield has fallen to 4.5% this year, down from 13.3% in late May. Schiff points out that if MSTR investors want to be bullish on Bitcoin, they should just own it directly instead of buying into Saylor's strategy.

MicroStrategy currently holds 843,775 BTC, which is more than 4% of the total 21 million BTC in existence. The company also has a cash pile growing rapidly, reaching $3.75 billion as of July 26, which can cover roughly 25 months of dividends.