Strategy Accumulates Bitcoin as Schiff Warns of Potential Reversal

Strategy, the company known for its significant Bitcoin holdings, recently acquired 334 BTC for approximately $28.7 million and repurchased $176 million of its preferred stock (STRC). This comes as Peter Schiff warns that Bitcoin's price could reverse if technology stocks pull back. The competing signals raise questions about whether Strategy's current funding mix can sustain larger purchases if market risk appetite fades.

Strategy's Bitcoin holdings now stand at 848,000 BTC, which is just over 4% of Bitcoin's total supply. At the time of the report, Bitcoin was trading around $86,000, up more than 4% over seven days and over 8% over 30 days, but still down 30% year over year. The company reported a $21 billion gain on digital assets in Q3 2026.

The latest figures show a $4.88 billion USD Reserve for preferred dividends and debt interest, separate from $833.4 million in USD Cash for general purposes, including Bitcoin purchases. Strategy's filing also revealed $15.7 million in net proceeds from MSTR common-stock sales, all directed to Bitcoin, alongside a $13 million draw from USD Cash for the purchase.

Schiff argues that STRC's recovery has not restored the company's ability to raise money through new issuance. He linked Bitcoin's move back above $80,000 to improved confidence and possible short covering, but noted that the rebound did not establish $80,000 as technical support. Schiff also tied his outlook to falling bond prices, weak inflation and employment signals, and oil near $91 a barrel.