Peter Schiff has renewed his attack on Michael Saylor’s Strategy after the company sold 3,588 Bitcoin, arguing that the sale marks a deeper shift in the company’s business model.
In a post on X, Schiff said MSTR is no longer following the same playbook of selling stock and issuing debt to buy Bitcoin. Instead, he argued that Strategy’s new model is to sell Bitcoin to pay interest, fund dividends, repay debt and support share buybacks.
Key Highlights
- Peter Schiff said Strategy now has a “completely different business model” after its latest Bitcoin sale.
- Strategy sold 3,588 BTC for $216 million to fund dividends on its Digital Credit securities.
- Schiff claimed the company sold below its average cost and warned that future losses could be “much greater.”
His comments came shortly after Strategy disclosed that it sold 3,588 BTC for $216 million to fund dividends on its Digital Credit securities. Executive Chairman Michael Saylor said the company still held 843,775 BTC and had $2.55 billion in dollar reserves as of July 5.
Schiff Says Strategy’s Losses Could Grow
Schiff also claimed that Strategy sold the 3,588 BTC at an average price of $60,196.73. Based on what he described as MSTR’s average cost, he estimated the sale created a realized loss of about $15,000 per Bitcoin, or roughly $54 million.
He then warned that with more than 840,000 BTC still on Strategy’s balance sheet, the company’s total losses could become “much greater” if it continues selling Bitcoin at depressed prices.
The criticism is important because Schiff has long argued that Strategy’s Bitcoin-heavy treasury model depends on a rising BTC price and continued market confidence in MSTR. The latest sale gives his bearish argument fresh momentum, as Strategy is now using Bitcoin not only as a treasury reserve asset but also as a liquidity source.
Strategy’s Bitcoin Model Faces New Scrutiny
Strategy’s latest sale follows a broader capital-management shift announced earlier. The company has authorized a Bitcoin monetization program that allows it to sell up to $1.25 billion of BTC to support dividends, interest payments, buybacks and dollar reserves.
That marks a major change from the company’s previous image as a one-way Bitcoin accumulator. MarketWatch described the move as a break from Strategy’s long-running “HODL” strategy, as the company can now sell Bitcoin to raise cash and repurchase its own stock.
Schiff’s argument is that this changes the core MSTR story. Until now, Strategy’s market pitch was simple: raise capital, buy Bitcoin and hold it. The new framework adds a different risk: Bitcoin may now be sold when the company needs liquidity.
Why Schiff’s Warning Matters for MSTR
The size of the latest sale is small compared with Strategy’s total Bitcoin reserve. The 3,588 BTC sale represents less than 0.5% of the company’s remaining holdings.
But the signal is larger than the sale amount.
Strategy’s Bitcoin position has long supported investor confidence in MSTR as a leveraged BTC proxy. Any sign that the company may sell Bitcoin to meet financial obligations can weaken that confidence, especially when BTC trades below Strategy’s average purchase cost.
MSTR was trading around $100.77 on July 6, while Bitcoin was near $61,676 after falling from an intraday high of $63,874.
That makes the $60,000 Bitcoin zone important for both BTC and MSTR. If Bitcoin holds above that level, investors may treat Strategy’s sale as controlled liquidity management. If BTC falls further, Schiff’s warning about larger realized losses may gain more attention.
Is Schiff Right?
Schiff is right that Strategy’s business model now looks different from its earlier accumulation-only phase.
The company has moved into active capital management, using preferred stock, dollar reserves, buybacks and Bitcoin sales as part of the same financial structure. That makes MSTR more complex than a simple Bitcoin treasury bet.
However, Schiff’s warning also depends on one key assumption: that Strategy will keep selling Bitcoin at prices below its average cost. The company has not said it plans to liquidate a large portion of its holdings immediately.
For now, the stronger takeaway is that Strategy’s sale has given critics a clear opening. MSTR investors are no longer only watching how much Bitcoin the company owns. They are now watching how often it may sell.
Also Read: Bitcoin Price Going Down Today: Is Strategy Behind the Crash?
