Key Highlights
- Strategy’s stock dropped sharply to around $86–$92, hitting a near two-year low as Bitcoin fell below $60,000.
- Peter Schiff warned that Strategy could trade at a discount to its Bitcoin holdings and may even be forced to sell Bitcoin to buy back shares.
- Bitcoin’s decline triggered about $1.1 billion in liquidations, pushing Strategy into an estimated $10.6 billion in unrealized losses.
Bitcoin critic Peter Schiff has continued to criticize Strategy Inc. (NASDAQ: MSTR) after the company’s stock dropped below $86.
In a post on X today, Schiff described the situation as a “meltdown,” claiming that the “stock will soon trade at a massive 40% discount to its Bitcoin per share.”
The pressure on Strategy came as Bitcoin dropped below $60,000 after losing more than $6,700 in a single trading day. The move triggered a wave of liquidations across crypto markets, with about $1.1 billion in leveraged positions wiped out within 24 hours.
Bitcoin briefly fell to around $57,000 before stabilizing near $59,372, marking one of its sharpest daily declines in months, according to CoinMarketCap.
Strategy stock falls to near two-year low
As Bitcoin fell, Strategy’s stock also dropped more than 8% in a single session, touching its lowest level in nearly two years. The stock opened near $103 before losing value through the day, marking the first time it had traded below $100 since March 2024.
The decline also pushed Strategy’s deeper into losses, with estimates suggesting about $10.6 billion in unrealized losses as Bitcoin moved below the average cost basis of its recent purchases from 2024 through 2026.
Schiff advises Strategy to sell some Bitcoin
Schiff had previously mentioned that Strategy is facing a growing gap between its stock price and the value of its Bitcoin holdings per share. He said that although the company owns a huge amount of Bitcoin, about 847,363 BTC worth around $53 billion, its stock has been falling faster than the value of those holdings.
This gap, according to him, shows that the company’s structure is under stress. He believes investors are losing confidence because the stock no longer reflects the value of the Bitcoin inside the company.
Schiff said the only way Strategy could fix this gap would be to sell part of its Bitcoin and use the money to buy back its own shares. “The best way to create shareholder value would be to sell Bitcoin to buy back shares until the discount is closed,” he said.
That idea directly goes against Michael Saylor’s long-standing plan, which is to keep buying and holding Bitcoin as a core company strategy. Schiff also warned that if the stock keeps falling, Strategy may not have a choice and could be forced into selling Bitcoin later to survive market pressure.
Meanwhile, CryptoQuant has also raised concerns about the company’s risk profile, suggesting that it should slow or pause additional Bitcoin purchases. The firm argued that continuing acquisitions at the current pace could increase pressure if market weakness persists.
Questions grow over Strategy’s Bitcoin plan
Even with all this pressure, Strategy has not changed its main plan. The company still sees Bitcoin as its main treasury asset. It has even sold small amounts of Bitcoin, about 32 BTC worth $2.5 million between May 26 and May 31, and used money raised from selling shares to buy more BTC at lower prices.
However, current market conditions are making that strategy harder to maintain. Since reaching record highs above $126,000 in late 2025, Bitcoin has undergone a sharp correction and fallen below $60,000.
The decline has increased pressure on companies with significant Bitcoin exposure, leaving investors closely watching Strategy’s financial position and its ability to maintain its accumulation strategy.
Also Read: Bitcoin Drops Below $60K Triggers $1.21B in Liquidations After PCE Report
