Schiff: Strategy May Need More Bitcoin Sales to Support STRC
Strategy Inc., led by Michael Saylor, has been using asset-sale proceeds to buy back shares of its STRC preferred stock. Despite this effort, the price of STRC remains below $95. Peter Schiff warns that Strategy may need to sell more Bitcoin and MSTR shares to prop up STRC.
Schiff argues that Strategy sold 1,690 Bitcoin for $108.6 million and used the proceeds to buy back about 1.15 million STRC shares. The company also sold 6.59 million MSTR shares for $653.1 million, adding $650 million to its dollar reserve.
Schiff points out that Strategy could need more Bitcoin and MSTR sales to support the preferred stock. This could put additional pressure on Bitcoin. He also links Bitcoin's weakness to gold's recent rally, stating that 'When gold initially broke out, Bitcoin broke down. When gold corrected, that's when Bitcoin bounced.'
With gold above $4,300 and Bitcoin trading near $62,851, Schiff believes that continued strength in gold could weigh on Bitcoin.