Peter Schiff Claims Strategy’s Bitcoin Buying Strategy Is Destroying Shareholder Value

Peter Schiff, a long-time Bitcoin critic, posted on X that Strategy’s financing structure appears to be under pressure, highlighting STRC trading below par and MSTR falling beneath what he described as a key accretive threshold.

He went on to argue that the company’s current approach of raising capital through issuing securities to buy Bitcoin is, in his view, now destroying shareholder value. According to Schiff, a more rational alternative would be to sell Bitcoin and use the proceeds to buy back discounted shares, though he noted that Michael Saylor cannot take that route.

Schiff also pointed out that Strategy’s earlier model relied on issuing common stock at premium prices and leveraging lower-yield preferred shares to benefit from expected Bitcoin appreciation. He claimed that this structure has now shifted, arguing that common shareholders are effectively absorbing a negative Bitcoin yield to sustain the company’s Bitcoin holdings.

Source: Peter Schiff