Peter Schiff Says Strategy’s Bitcoin Model Is Cracking as STRC Slides

• Peter Schiff claims Strategy’s Bitcoin treasury model faces growing pressure.
• STRC dropped below launch price, deepening losses for investors.
• Schiff questioned recent Bitcoin purchases and warned of scrutiny.

Peter Schiff has escalated his criticism of Strategy and its Bitcoin treasury strategy, arguing that recent losses across the company’s securities reveal growing weaknesses in its financial structure. The Euro Pacific Capital chief economist directed his latest comments at Strategy founder Michael Saylor as the firm’s STRC preferred stock extended its decline.

According to Schiff, the company’s heavily leveraged approach to acquiring Bitcoin is becoming increasingly difficult to maintain. He argued that falling prices across Strategy-related securities are placing pressure on investors while raising questions about the sustainability of the model.

In a series of posts on X, Schiff claimed that the premium once enjoyed by Strategy’s securities has largely disappeared. He also argued that declining prices in STRC and MSTR are exposing risks that many investors previously overlooked. “The financial house of cards Saylor built is collapsing,” Schiff wrote. He added that the widening discount between Strategy’s market value and its Bitcoin holdings reflects weakening investor confidence.

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STRC losses become central to Schiff’s criticism

A significant part of Schiff’s argument revolves around STRC, one of Strategy’s preferred stock offerings designed to provide investors with yield exposure. According to Schiff, STRC traded at 93.5 on June 16, leaving investors who purchased shares at $100 with losses of 6.5%. Selling pressure continued over the following sessions, pushing the security below $89.50 and increasing investor losses to more than 10%.

The decline deepened further when STRC touched a low of $85.32. Consequently, Schiff argued that Strategy may need to offer significantly higher yields to attract new capital and support future fundraising efforts. He estimated that restoring STRC to its original $100 level could require yields of roughly 13.5%. As a result, investors purchasing shares near recent lows could potentially receive yields approaching 17.5%.

Bitcoin purchases face renewed scrutiny

Schiff also criticized Strategy’s recent Bitcoin acquisitions, claiming they have not generated the shareholder value that supporters expected. According to Schiff, the company’s latest purchase of 1,550 BTC was completed under less favorable conditions than previous acquisitions. He claimed the transaction has already produced more than $6 million in unrealized losses.

Moreover, Schiff argued that the purchase reduced Bitcoin holdings on a per-share basis, creating what he described as a negative Bitcoin yield for existing shareholders. He maintained that investors seeking exposure to Bitcoin have more efficient alternatives than purchasing Strategy stock. Additionally, Schiff suggested that regulatory scrutiny could emerge if authorities determine that certain marketing claims surrounding the securities overstated their level of safety.

Debate over Strategy’s model continues

Schiff’s latest remarks arrive as investors closely monitor the performance of Strategy’s preferred securities and Bitcoin holdings. While supporters continue to view the company as a unique vehicle for Bitcoin exposure, critics argue that the model becomes more vulnerable when financing conditions deteriorate.

The debate surrounding Strategy’s long-term approach remains active, with both supporters and critics watching closely as market conditions continue to test the company’s Bitcoin-focused strategy.

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