Peter Schiff Questions Strategy’s Bitcoin Advantage as Yield Growth Slows

• Peter Schiff argued that Strategy’s declining Bitcoin yield weakens its investment appeal and reduces incentives for investors choosing company shares directly.
• Strategy increased its dollar reserve to $3.75 billion, strengthening liquidity while retaining 843,775 Bitcoin without additional purchases announced alongside it.
• Supporters viewed stronger liquidity as financial stability, while critics questioned whether slowing yield justified extra corporate risk anymore for shareholders.

 

Bitcoin critic Peter Schiff has challenged Strategy’s long-standing Bitcoin investment model, arguing that its declining Bitcoin yield could eventually turn negative this year. According to Schiff, the slowdown weakens the company’s core value proposition and gives investors fewer reasons to own Strategy stock instead of Bitcoin itself.

His comments followed Strategy’s latest financial update, which highlighted a stronger cash position rather than another Bitcoin purchase. Although supporters viewed the move as a sign of financial discipline, Schiff argued that the company’s shrinking Bitcoin yield tells a different story.

According to Schiff, Strategy built its reputation by raising capital, buying more Bitcoin, and increasing the amount of BTC backing each share. That approach allowed shareholders to gain greater Bitcoin exposure without purchasing the cryptocurrency directly.

However, Schiff noted that the company’s Bitcoin yield dropped from 13.3% to 4.5% within roughly two months. Consequently, he argued that the advantage once offered by Strategy has weakened considerably.

According to Schiff, investors should reconsider the additional corporate risks if the company’s Bitcoin yield no longer outperforms direct Bitcoin ownership. He suggested that buying Bitcoin outright may become the simpler investment choice.

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Strategy strengthens liquidity instead of expanding Bitcoin holdings

While Schiff questioned the company’s investment appeal, Strategy strengthened its financial position by increasing its dollar reserve. Executive Chairman Michael Saylor announced that the company added $525 million, bringing the reserve to approximately $3.75 billion.

Moreover, Strategy did not disclose any new Bitcoin purchases alongside the announcement, although the company still holds 843,775 BTC, maintaining its position as the world’s largest corporate Bitcoin holder.

Management has consistently explained that the dollar reserve serves as a liquidity buffer. Since many of the company’s financial obligations are denominated in U.S. dollars, the reserve helps cover dividend payments and other commitments without requiring Bitcoin sales.

Besides strengthening liquidity, Strategy repurchased $25 million of its STRC preferred stock. The preferred shares currently trade below their underlying claim value of $100, making the repurchase part of the company’s broader capital management strategy.

Supporters believe the larger cash reserve enhances financial stability while preserving the company’s long-term Bitcoin strategy. According to Andrew Webley, chief executive officer of The Smarter Web Company, Strategy’s preferred equity structure represents one of the most significant developments in Bitcoin corporate finance.

Conclusion

Schiff’s latest criticism places Strategy’s slowing Bitcoin yield at the center of the debate over its investment model. Meanwhile, the company continues prioritizing liquidity management while maintaining its substantial Bitcoin holdings as the foundation of its long-term strategy.

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