Key Highlights
- Peter Schiff criticized Michael Saylor and Strategy following a sharp decline in STRC shares.
- Schiff argued that investors may not have fully understood the risks tied to the company’s Bitcoin-linked financial structure.
- STRC shares fell sharply during June 18 trading, touching intraday lows near $85 amid heightened volatility.
Peter Schiff, a gold advocate and critic of Bitcoin, has sharply criticized Michael Saylor and Strategy following a steep decline in the share price of Strategy Inc. (STRC).
In a series of posts on X on Thursday, Schiff highlighted the recent performance of STRC, suggesting that retirees and investors who purchased the stock based on Saylor’s promotions may have grounds for legal action due to allegedly insufficient risk disclosure.
He described Saylor’s financial structure as a “house of cards” that is now collapsing, pointing to widening discounts on MSTR’s Bitcoin holdings, the drop in STRC, and weakness in Bitcoin itself.
Schiff remains bearish on Bitcoin
Schiff further predicted continued pressure, stating that Bitcoin’s breakdown could drag the broader crypto sector lower. His comments reflect a long-standing bearish stance on Bitcoin, contrasting with Saylor’s well-known advocacy for the asset as a treasury reserve.
STRC experienced notable selling pressure on June 18, 2026. Intraday trading showed the stock falling to as low as $85.32. At that level, Schiff noted the implied yield had risen to 13.5%, arguing that restoring the share price to $100 would require even higher yields for new investors.
STRC chart faces continued volatility
Real-time market data reflected ongoing volatility. One session showed STRC trading at $85.26, down $3.74, or 4.20%, as of 12:30 PM EDT, according to Yahoo Finance. A broader five-day view indicated a 3.82% drop for the day and approximately 11.42% over the recent period. The charts displayed a sharp downward move during morning trading, followed by partial stabilization near the lower range.
Reason behind the potential drop
The price drop comes amid broader cryptocurrency market weakness, with Bitcoin experiencing downward pressure. STRC, which appears linked to MicroStrategy’s Bitcoin-focused strategy, has been sensitive to movements in Bitcoin prices and investor sentiment toward leveraged crypto exposure vehicles.
The recent decline in STRC shares comes amid growing concerns about the company’s main financing instrument, the Variable Rate Series A Perpetual Stretch Preferred Stock. The connection between Strategy’s (MSTR) price volatility and STRC’s weakness underscores the risks involved in the company’s leveraged exposure to bitcoin.
Strategy Inc currently holds 846,842 BTC on its balance sheet, valued at approximately $54 billion based on current Bitcoin prices in the $64,000–$65,000 range. Once primarily a business intelligence software provider, the company has effectively evolved into a Bitcoin treasury and yield vehicle.
Supporters, including Executive Chairman Michael Saylor, argue that this large Bitcoin reserve, acquired at an average price of around $75,000 per coin, serves as a substantial liquidity backstop that is stronger than conventional corporate assets.
Debates revolving around risk disclosure
The episode underscores ongoing debates in financial markets about risk disclosure for products tied to volatile cryptocurrencies. While proponents highlight potential returns in bull markets, critics like Schiff point to the potential for significant principal losses, particularly for retail and retirement investors.
As of the latest trading session, STRC remains well below recent highs, with market participants watching for signs of stabilization or further downside amid crypto sector volatility. However, Strategy Inc. has not publicly responded to Schiff’s latest remarks in the provided posts.
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