According to FinBold, American economist Peter Schiff has warned that Strategy (NASDAQ: MSTR) is entering the early stages of collapse. He argues that the company's financial structure is beginning to unravel as its stock continues to decline, with MSTR closing at $171.42 on Monday, down more than 3% after a 12% intraday drop. Schiff claims that CEO Michael Saylor is now selling stock to raise dollars to cover interest and dividend obligations, rather than to buy Bitcoin. He criticized the business model as unsustainable, noting that the company is issuing new shares to raise cash, which is then used to buy low-yield Treasuries while taking on more expensive debt and preferred stock. Strategy's bearish sentiment has also been fueled by CEO Phong Le's recent comments suggesting the company could sell some Bitcoin if the share price falls below its net asset value or if capital raising becomes difficult. This has unsettled investors who previously viewed the company's Bitcoin holdings as central to its identity and valuation.
American Economist Peter Schiff Warns of 'Beginning of the End' for Strategy (MSTR)
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