Strategy (MSTR) shares have once again found themselves in the market spotlight, surging to $137.4 amid a confident recovery in Bitcoin, which this week broke through the psychologically important level of $80,000. However, not all market participants share the optimism about this rally. Peter Schiff, one of the most consistent critics of the leading cryptocurrency, has once again warned of the risk of a "death spiral" for Michael Saylor's company.
Bearish Forecast: Short Squeeze, Not Real Demand
Schiff has insisted for months that Strategy's model is highly vulnerable due to dividend obligations on preferred shares. In his view, the current rise in the stock price is not a manifestation of real investor faith in the company's strategy, but merely a technical short squeeze. Traders who had bet on MSTR's decline were forced to massively close their short positions as the price rose, creating the illusion of a powerful bullish momentum.
The critic also reminds that part of Strategy's dividend payments is financed through the issuance of new shares, which dilutes the stake of existing shareholders and makes the company's financial structure even more fragile. This is not the first time Schiff has called MSTR a "scheme" and predicted its collapse—his bearish scenario has remained unchanged for many months.
Saylor's Response: Irony and Confidence
Michael Saylor, in turn, responded to the attacks with his characteristic self-irony. On social media, he posted a short video generated using artificial intelligence, in which he rides a bull somewhere in Spain. This gesture is not just a mockery of Schiff's forecasts, but also a demonstration of unwavering faith in Bitcoin and the chosen strategy of accumulating reserves in the leading cryptocurrency.
Notably, experts are already noting a decline in panic sentiment around the company. Talk that Strategy would allegedly have to sell off its Bitcoin reserves to cover obligations is gradually fading, giving way to more constructive analysis.
The polarity of these assessments reflects a fundamental divide in how Strategy's model is perceived. Schiff sees only a fragile financial pyramid that will collapse at the slightest decline in BTC. Saylor, meanwhile, views the current situation as an opportunity for exponential growth, backed by a long-term bullish trend in the cryptocurrency market. In my view, the truth, as usual, lies somewhere in between: as long as Bitcoin holds key support levels, Saylor's model will work, but any serious BTC correction could trigger precisely the scenario Schiff warns about.