Prominent economist and long-time Bitcoin critic Peter Schiff has renewed his attacks on Strategy (formerly MicroStrategy) following the company’s latest financial move. Strategy recently established a $1.44 billion USD reserve to ensure it can meet dividend and interest obligations—reducing concerns that it would be forced to sell part of its massive Bitcoin holdings.
Schiff Claims MSTR’s Collapse Is Near
In an X post, Schiff argued that this moment marks the “beginning of the end” for MSTR. He accused Michael Saylor and his firm of selling Class A shares simply to raise dollars for dividend and interest payments. Schiff labeled the stock “broken,” called Strategy’s business model a “fraud,” and even described Saylor as the “biggest con man on Wall Street.”
As reported earlier, Strategy sold 8.2 million MSTR shares to build the reserve and used part of the proceeds to purchase 130 more BTC, bringing the company’s total holdings to 650,000 BTC. Many Bitcoin advocates praised the move as a smart way to avoid selling Bitcoin during times of market stress.
However, Schiff insists this action signals the company’s expectation that Bitcoin prices will fall. He warned that once the USD reserve is depleted, Strategy will still need to sell BTC—potentially at far lower prices than today.
MSTR Stock Drops Over 7%
MSTR shares have extended their losses, falling 7% to around $164, according to TradingView data. This marks the lowest level since October 2024. Market analysts note the stock is now down 55% since October 6th.
Year-to-date, the stock has fallen more than 45%, far below its July 2025 peak of roughly $455. This steep decline puts Strategy’s mNAV at risk of dropping below 1, a level at which the firm has previously admitted it may need to sell Bitcoin or BTC derivatives to meet financial obligations.
The positive detail: Strategy’s newly established reserve is large enough to cover months of dividend payments, likely avoiding BTC liquidation in the near term.
Analysts Warn of Potential Risks
Despite the cushion provided by the USD reserve, concerns remain. CryptoQuant CEO Ki Young Ju commented that selling Bitcoin below 1x mNAV would be damaging. While it could provide short-term relief for Strategy shareholders, it would pressure BTC’s market price—and ultimately harm MSTR even further. He described the scenario as a potential “death spiral.”
Supporters of Strategy, including well-known Bitcoin advocate Max Keiser, applauded the firm’s decision to create the reserve. Saylor emphasized that the move is designed to help Strategy navigate short-term volatility while continuing to hold and accumulate Bitcoin.
