Strategy's Bitcoin Yield Plummets 66 Percent as Investment Thesis Unravels

Peter Schiff has pointed out that Strategy's Bitcoin yield is collapsing, raising concerns about its investment thesis. The year-to-date Bitcoin yield for Strategy stood at 13.3 percent as of May 25 but dropped to 4.5 percent after Michael Saylor's latest capital move. This represents a decline of 66 percent in under two months.

Schiff notes that the 2026 Bitcoin yield will likely turn negative if this trend continues, making it better for investors to own Bitcoin directly rather than holding Strategy shares. The company uses the Bitcoin yield metric to argue that its capital markets activity adds value to shareholders without direct ownership.

However, with the yield collapsing from 13.3 percent to 4.5 percent in two months, the core premise of Strategy's investment thesis starts to look shaky. Schiff has been wrong about Bitcoin many times before, but this time he is pointing to a live data series that shows a significant decline.

The company's capital structure is designed to accumulate Bitcoin, but it is increasingly being used to service obligations created by that accumulation. Each preferred stock issuance dilutes the Bitcoin yield further, and each Bitcoin sale to fund dividends compounds the problem.