While Strategy (MSTR) shares soar in tandem with Bitcoin, renowned critic Peter Schiff is once again scaring the market with a "death spiral" scenario. However, Michael Saylor, the company's CEO, responds with undisguised irony, posting a video of himself riding a bull somewhere in Spain.
Since the beginning of August, Strategy's stock has shown impressive momentum, synchronously mirroring the trajectory of the first cryptocurrency, which this week has again settled above the $80,000 mark. But Schiff sees this not as organic growth, but merely as a forced short squeeze by traders who were massively locking in losses amid the uptrend.
Schiff's Bearish Scenario: Betting on Vulnerability
Schiff, a long-time Bitcoin opponent, has been insisting for months that dividend obligations on preferred shares make Strategy extremely vulnerable to any significant drop in BTC's price. According to his logic, the company finances payouts by issuing new shares, and the dividends themselves are "floating" in nature. This, in his view, creates a vicious cycle: a drop in Bitcoin's price would force sales, which would crash the quotes even harder. He has previously called MSTR a "pyramid scheme" and warned of an inevitable collapse.
Saylor Retorts: Confidence in Growth
Saylor, for his part, does not leave the attacks unanswered. On social network X, he published a short but expressive AI-generated video in which he, riding a bull, demonstrates absolute faith in further growth. This gesture is not just PR, but a signal to the market that the company's management has no intention of changing its strategy, despite all the warnings. Experts have already noted that the stock surge was driven by a reduction in panic sentiment and talk that the company would supposedly have to sell off its Bitcoins to cover obligations.
The polarizing assessments demonstrate a fundamental divide in understanding Strategy's business model. Schiff emphasizes the balance sheet risks he has been talking about for over a year, while Saylor, relying on a powerful uptrend, readily showcases his confidence publicly.
My take: The key question here is not who is right in the long term, but how long the current bullish momentum will last. As long as Bitcoin remains confident, Saylor's model works without a hitch. But any serious market reversal will instantly activate Schiff's bearish scenario, and then the "death spiral" could go from theory to reality. Investors should watch closely not the words, but the ratio of BTC's price to Strategy's debt load.