Strategy's common stock (MSTR) has fallen below $100, drawing fresh criticism from Bitcoin skeptic Peter Schiff, who warns that deeper declines could force the company to sell some of its Bitcoin holdings. In a series of posts on X, Schiff argued that sustained short-seller pressure might make share repurchases more attractive than further BTC accumulation.
MSTR Drops to $96, Six-Month Loss Exceeds 38%
MSTR traded at $96.27 on June 24, down 7.2% on the day and nearing a two-year low. Regulatory filings show a nearly 20% loss over the past five trading days and a decline of more than 38% over the last six months. Schiff suggested that selling Bitcoin to fund buybacks could narrow the discount between market value and underlying assets, but questioned whether such a move would restore investor confidence. He also warned that any forced liquidation would likely weigh on Bitcoin prices.
Capital Moves: Stock Sales Fund BTC Buys and Cash Reserves
Company disclosures reveal that Strategy sold approximately 2.71 million MSTR shares last week, generating about $335.5 million. Executive Chairman Michael Saylor later disclosed that roughly $35 million of that capital was used to purchase 520 Bitcoin, while the firm added about $300 million to its dollar reserves, bringing the cash balance to approximately $1.4 billion. Saylor stated that the larger cash position aims to support the credit quality of Strategy's Digital Credit securities.
CryptoQuant Urges Pause, Flags Dividend Obligations
On-chain analytics firm CryptoQuant recommended that Strategy halt Bitcoin purchases and focus on rebuilding liquidity. The firm reported that annualized dividend obligations tied to the company's preferred stock (especially STRC) have climbed to roughly $1.2 billion. Cash reserves have fallen 38% in 2026, while dividend coverage dropped from over seven years to about 14 months. Restoring coverage to 24 months would require approximately $2.8 billion in cash, nearly double current reserves. CEO Ki Young Ju argued that Strategy's BTC buying is no longer a major price catalyst and that buying during selling pressure may only defend price ranges, not spark a rally.
STRC Preferred Stock Under Fire, Schiff Escalates Criticism
In a follow-up post on June 24, Schiff targeted Strategy's perpetual preferred stock STRC. He claimed the product was marketed to risk-averse retirees as a low-volatility Bitcoin proxy, yet it fell more than 5% that day and is now over 17% below levels where many investors bought shares the previous month. Schiff said the decline erased nearly two years of dividend income and accused Saylor of making "material misrepresentations" in describing the security.