Schiff Slams Strategy's Share Sales: A Warning to Bitcoin Bulls

Peter Schiff has questioned the logic of investing in Strategy (MSTR) shares over Bitcoin. The economist pointed out that after the company sold 5.43 million common shares and raised $544.5 million, it did not use those funds to purchase more BTC.

This sale brought Strategy's total share count up, but its Bitcoin holdings remained at 843,775 BTC, unchanged from before. As a result, the Bitcoin yield linked to each MSTR share fell to 4.5%, down from 13.3% on May 25.

Schiff argues that investors who remain bullish on Bitcoin may be better off holding BTC directly rather than buying MSTR shares. He also warned that Strategy's Bitcoin yield could turn negative if the current trend continues.