Peter Schiff Says Strategy Is No Longer a Leveraged Bitcoin Bet, Warns MSTR Shareholders of Infinite Dilution
Peter Schiff, a longtime bitcoin critic and gold advocate, has issued a fresh warning to shareholders of Strategy Inc. (Nasdaq: MSTR), arguing that the company’s financing model is shifting away from being a leveraged bitcoin bet. In a July 16 post on X, Schiff said that continued share sales would dilute bitcoin ownership per common share, while creditors and preferred shareholders stand to benefit.
Schiff’s criticism focuses on Strategy’s capital structure. The company holds 843,775 BTC valued at approximately $54.13 billion, but it also carries $6.75 billion in debt and $15.46 billion in preferred securities. While Strategy’s total bitcoin stash is massive, Schiff argues that common shareholders may not see proportional gains if the share count grows faster than the treasury.
Data from Strategy’s live dashboard shows that the company holds 207,776 satoshis per share. However, the key metric for shareholders is whether bitcoin per share continues to rise. The latest figures are mixed. Strategy reported a quarterly BTC yield of negative 1.6%, indicating that bitcoin exposure per share weakened during the period. In contrast, the year-to-date BTC yield remained positive at 6.6%, providing a counterpoint to Schiff’s claim.
Schiff’s argument also ties into the company’s obligations to preferred investors. Strategy’s preferred securities include STRC, a perpetual preferred stock paying a variable annual dividend currently set at 12%. To meet interest and dividend payments, the company may need to issue more shares or sell bitcoin, which could further dilute common shareholders.
The debate remains unresolved. A rebound in bitcoin per share would support Strategy’s financing model, while further declines would bolster the dilution case. The next major catalyst will be Strategy’s second-quarter earnings release on July 30, which will provide updated share counts, bitcoin per share, and financing activity. Investors will be watching closely to see whether MSTR still offers amplified bitcoin exposure or if more value is being directed toward senior investors.