Key Highlights
- Strategy bought 1,550 BTC worth about $101 million, bringing total holdings to around 845,256 BTC.
- Peter Schiff said this is a “damage control” move. He said investors may get less Bitcoin exposure over time.
- The purchase was funded mainly through selling 1.4 million+ MSTR shares, which raised about $181 million.
Longtime Bitcoin skeptic Peter Schiff has once again spoken out against Michael Saylor’s company, Strategy, following its latest Bitcoin purchase.
On Monday, Saylor announced that Strategy bought 1,550 BTC worth about $101 million. The purchase was confirmed in company filings and increased the company’s total holdings to roughly 845,256 BTC, making it the largest company Bitcoin holder in the world.
However, the move did not sit well with Schiff. In a post on X, he described the purchase as “damage control.” He argued that when a company sells shares to buy Bitcoin, it reduces the value each shareholder gets from Bitcoin.
“If MSTR sold stock at a discount, that diluted Bitcoin per share.” In other words, each share may now represent fewer Bitcoins than before. He added, “This doesn’t prove MSTR can sell Bitcoin, but that it can’t,” meaning he thinks the company is trapped in a cycle of always raising money instead of using Bitcoin freely.
How the purchase was funded
Saylor said that this new purchase was made using money by selling about 1,409,600 MSTR Class A shares, which brought in around $181 million during the week of June 1 to 7, 2026. The company also added $100 million to its U.S. dollar reserves, taking its total cash to about $1.0 billion.
The company said it did not sell any preferred shares like STRF, STRC, STRK, or STRD during this period. Instead, the main way it raised money was through selling common stock. It also still has about $25.96 billion worth of shares available for future selling, which means it can continue raising money if it wants to keep buying Bitcoin.
Schiff argued that this kind of setup creates what he called a “negative Bitcoin yield.” According to his view, while Strategy continues to acquire more Bitcoin, shareholders may not gain proportionally greater exposure because new shares are continually being issued. As a result, total Bitcoin holdings rise while Bitcoin exposure per share could decline.
Strategy said it bought this new Bitcoin at an average price of about $65,332 per coin, while Bitcoin was trading around $62,900 at that time. So Strategy bought slightly above the current market price.
Even with that, it continues to grow its holdings and also build its cash reserves, showing that it is trying to balance both Bitcoin and dollars in its treasury.
Schiff sees Bitcoin dropping to $20K
Schiff has been a longtime Bitcoin critic. He has often mentioned how he prefers Gold to the largest cryptocurrency. Just last week, he said Bitcoin could fall below $20,000 if it breaks under $50,000. He stated that the market is too calm and that investors are not prepared for a big drop.
“There’s way too much complacency in Bitcoin for the market to be anywhere near a bottom.” he said. He also thinks a sharp fall could make long-term holders lose confidence and start selling.
Beyond Bitcoin itself, Schiff has also questioned Strategy’s stock setup, especially STRC, saying it could become unstable if investors lose trust in its payments and yield structure. He even pointed out that the company once sold 32 BTC worth about $2.5 million to help pay dividends, even though it holds more than 840,000 BTC overall.
In the middle of all this, Strategy continues to push forward with its Bitcoin plan, using stock sales and market funding to keep building its huge crypto treasury. The debate between Strategy’s bold strategy and Schiff’s warnings is now getting louder, with both sides holding very different views on what this means for the future of Bitcoin and company finance.
Also Read: Bitcoin Stages Sharp Relief Rally Amid Brutal Correction: From $59K Lows to $63K+ Bounce
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