Peter Schiff, the tireless critic of the first cryptocurrency, has once again attacked Strategy (MSTR) with a grim "death spiral" forecast. However, the market is once again demonstrating the opposite: the company's shares soared to $137.4, moving in sync with the bitcoin rally, which this week firmly established itself above the $80,000 mark. Michael Saylor, responding to his opponent's jabs, published a short AI-generated video of himself riding a bull somewhere in Spain, showing complete confidence in his strategy.
Schiff's Arguments: Forced Short Squeeze or Real Demand?
Since the beginning of August, Strategy's shares have been rising almost in lockstep with bitcoin. But Schiff sees this not as fundamental investor interest, but merely a technical effect—a massive forced covering of short positions. In his logic, traders who had bet on a decline were forced to buy back shares, which triggered the rally. In his view, this has nothing to do with real market participants' belief in the company's long-term potential.
The critic has been insisting for months on the vulnerability of Strategy's business model. The key risk he highlights is the dividend obligations on preferred shares. Schiff claims that a significant portion of these payments is financed by issuing new shares, creating a vicious cycle. If the price of bitcoin begins to fall, the company could face a cascade of problems, which he calls a "death spiral."
Saylor's Response: Irony and Confidence in Growth
Michael Saylor did not engage in a lengthy debate. Instead, he posted a short AI-generated video on social network X, where he confidently sits atop a bull. This gesture is not just mockery, but a demonstration of his unwavering belief that bitcoin's growth will continue, and therefore the company's strategy of accumulating BTC remains a winning one.
The polarizing assessments reveal a fundamental divide in how Strategy's model is perceived. Schiff, as a representative of traditional finance, sees only the fragility of the balance sheet and risks associated with debt burden. Saylor, as an ideologue of digital capital, is betting on the unlimited growth potential of bitcoin, ignoring possible short-term corrections.
My view: In the short term, the market is certainly on Saylor's side. However, Schiff's warnings are not without a grain of truth. The question is not whether bitcoin will rise in the long run, but whether Strategy can survive a deep and prolonged correction without serious shocks to its balance sheet. As long as BTC shows strength, MSTR shares will remain one of the most volatile and interesting instruments on the market, but investors should remember the double leverage—both on the way up and on the way down.