Saylor May Need to Sell More Bitcoin to Support STRC

Michael Saylor's digital credit strategy is under pressure, according to Peter Schiff. In an attempt to push STRC preferred stock back towards its $100 target, Strategy has sold significant amounts of Bitcoin and MSTR shares. Despite these efforts, STRC remains below $95, prompting Schiff to warn that Saylor will have to sell 'a lot more' Bitcoin and MSTR shares.

Schiff has criticized Strategy's capital-management strategy in recent weeks, arguing that it is coming at the expense of MSTR common shareholders and Bitcoin exposure. The company sold 1,690 BTC for approximately $108.6 million last week to repurchase about 1.15 million STRC shares.

Saylor has described STRC as a core part of the company's digital credit strategy, but Schiff sees recent sales as evidence that the model is coming under pressure. Since even the prospect of those sales will cause Bitcoin to fall, he believes Saylor will have to sell 'a lot more' Bitcoin than expected to raise the $5 billion needed.