While Strategy (MSTR) shares show impressive growth, reaching $137.4 amid a confident bitcoin recovery, well-known cryptocurrency critic Peter Schiff is once again predicting the company's imminent collapse. In his traditional style, he calls the current momentum not a sign of strength, but merely a temporary effect that will result in serious losses for investors.
Schiff's bearish scenario: what's behind the rise?
Since the beginning of August, Strategy's quotes have been moving in sync with bitcoin, which this week once again held above the psychologically important level of $80,000. However, Schiff, who has been insisting for months on a "death spiral" for Michael Saylor's company, believes this surge has no real foundation. According to his logic, the rise is driven not by an influx of new buyers, but by forced short covering — traders who had bet on a decline were forced to buy back shares en masse, creating the illusion of a bullish trend.
Schiff's key thesis remains unchanged: Strategy's model, based on issuing preferred shares with floating dividends, is extremely vulnerable. If bitcoin begins to correct, the company will face a cascade of problems that could lead to the collapse of the entire structure. He has repeatedly called MSTR a "scam" and warned that payments on obligations are effectively financed by issuing new shares, which only worsens the debt burden.
Saylor's response: irony and confidence
Michael Saylor, for his part, prefers to respond to criticism with humor and demonstrative confidence. In response to Schiff's latest warning, he posted a short AI-generated video on social media platform X, in which he sits atop a bull somewhere in Spain. This gesture is a clear hint that the head of Strategy has no intention of abandoning his strategy and believes in the continuation of the leading cryptocurrency's rally.
Notably, other experts are also recording a shift in market sentiment: panic selling is giving way to talk that the company will no longer have to sell bitcoins to cover its obligations. This adds optimism and supports MSTR's quotes.
My take on the situation
The polarity of assessments surrounding Strategy only underscores how volatile and unpredictable this story remains. On one hand, Schiff's arguments about the fragility of the financial model are not without logic, especially in the event of a prolonged BTC correction. On the other, the current market dynamics and Saylor's confidence suggest that the bears are not yet ready to seize the initiative. The key factor remains bitcoin's resilience above $80,000: if this level holds, Strategy has every chance to continue growing, and predictions of a "death spiral" will remain just a theory.