Peter Schiff, one of the most consistent critics of bitcoin, is once again warning about risks to Strategy (MSTR) shares. Against the backdrop of an impressive rally in the first cryptocurrency, which this week surpassed the $80,000 mark, the company's stock soared to $137.4. However, Schiff sees this not as fundamental growth, but merely a temporary short squeeze that does not reflect real market confidence.
Since early August, Strategy shares have moved in tandem with bitcoin, and the current surge is a vivid confirmation of that. But, according to Schiff, the driving force is not new buyers, but traders forced to cover their shorts as the price rises. He never tires of repeating that the dividend burden on preferred shares makes Strategy extremely vulnerable in the event of a BTC reversal. Previously, he has called MSTR a "scheme" and warned of a "death spiral," pointing out that part of the dividends are financed through the issuance of new shares, and the payments themselves are floating.
Saylor responds with irony
Michael Saylor, executive chairman of Strategy, did not stay silent. In response to Schiff's latest predictions, he posted a short AI-generated video on social network X, in which he impressively sits atop a bull somewhere in Spain. This gesture is not just trolling, but a demonstration of unwavering faith in the company's strategy, which is built on the long-term growth of bitcoin.
Notably, experts have already pointed out that a decline in panic sentiment and talk that the company would have to sell BTC to cover obligations contributed to the stock surge. The polar assessments of Schiff and Saylor highlight a fundamental divide in how Strategy's model is perceived. The critic sees a balance sheet risk he has been talking about for over a year, while the optimist bets that the bullish BTC trend will continue.
Whether Schiff's warning proves true largely depends on how long the current bitcoin rally lasts. If the market corrects, pressure on MSTR could be severe. But for now, bulls are setting the trend, and Saylor seems ready to ride that bull to the end.