Strategy shares have rebounded alongside Bitcoin, but Peter Schiff says the rally does not change his bearish view of Michael Saylor’s Bitcoin-heavy corporate model.
MSTR traded near $137.40 on Thursday, extending gains as Bitcoin held above $80,000. Schiff argued that part of the move may be driven by short covering rather than a meaningful improvement in Strategy’s fundamentals.
In his latest warning, Schiff again described Strategy as vulnerable to a potential “death spiral” because of its preferred-stock obligations and dependence on favorable capital-market conditions.
Bitcoin Strength Supports MSTR
The stock’s rebound has closely followed Bitcoin’s recovery. Earlier this month, MSTR shares climbed as Strategy’s Bitcoin holdings returned to a sizable unrealized profit.
Broader crypto demand has also improved. US spot Bitcoin ETFs recently recorded a nine-day inflow streak exceeding $3 billion, providing additional support for BTC prices and crypto-linked equities.
Strategy Adds $1.6B Liquidity Buffer
Schiff’s main concern is whether Strategy can continue meeting preferred dividends and other obligations if Bitcoin falls sharply or access to equity financing becomes less attractive.
Strategy has responded by increasing its financial flexibility. The company recently created a $1.6 billion cash pool for Bitcoin purchases, stock buybacks and other treasury operations, according to Reuters.
That liquidity weakens the immediate death-spiral argument, although Strategy remains highly exposed to Bitcoin volatility.
Saylor, meanwhile, has continued signaling confidence in the bullish case. For investors less familiar with the asset driving Strategy’s valuation, this Bitcoin guide explains the basics.