Schiff Warns Strategy Will Need to Sell 'A Lot More' Bitcoin

Michael Saylor's company Strategy has been selling Bitcoin (BTC) to buy back its preferred stock STRC, but it's still trading below $95. According to Peter Schiff, a longtime critic of Bitcoin and gold advocate, Saylor will have to sell 'a lot more' BTC and MSTR shares to push STRC towards its $100 target.

Schiff has repeatedly argued that Strategy's attempts to support STRC are coming at the expense of MSTR common shareholders and Bitcoin exposure. In recent weeks, Schiff has amped up his criticism of Strategy's capital-management strategy, warning that Saylor is 'going to have to sell a lot more' BTC to raise cash.

Schiff points out that despite selling 1,690 BTC for approximately $108.6 million last week and using the proceeds to repurchase about 1.15 million STRC shares, STRC is still trading below $95. He claims that Saylor will have to sell even more BTC and discounted common stock to raise the price of STRC to $100.

Saylor has described STRC as a core part of Strategy's 'digital credit' strategy, but Schiff sees the recent sales as evidence that the model is coming under pressure. He warns that the prospect of continued Bitcoin sales will cause BTC to fall further, making it even harder for Saylor to raise the $5 billion needed.