Schiff Says Sell Bitcoin as Saylor Abandons Digital Credit Vision

Bitcoin critic Peter Schiff is advising his followers to sell Bitcoin and Strategy's stock (MSTR) after he claims Michael Saylor, Founder and Chairman of Strategy, has abandoned the 'digital credit' vision. According to Schiff, $MSTR has been consistently selling Bitcoin at a loss to buy dollars as lenders have lost confidence in Bitcoin as collateral.

The 'digital credit' is the use of BTC as collateral to raise funds, which has long been touted by Saylor through its STRC and other debt instruments. However, Strategy's recent sales of 1690 BTC (worth $108.6M) last week have helped increase its cash reserve to $4.65B or 2.7 years of coverage for its dividend obligations.

This is part of Strategy's new BTC monetization plan, which has been criticized by some analysts but seen as a slow deleveraging that is net positive for BTC in the long run by others like Grayscale. Despite this, Schiff remains skeptical and views Strategy's sales as a failure of Saylor's vision.