Schiff Calls Out Bad Math in Strategy's Bitcoin Plan
Analysis
Price Impact
MedPeter schiff, a known bitcoin critic, is calling out microstrategy's (mstr) strategy of buying bitcoin by issuing stock. he argues that mstr is currently selling its stock at a discount, which dilutes the bitcoin held per share, potentially harming shareholders. while mstr's buys are generally seen positively by the bitcoin community, schiff's criticism highlights a potential structural weakness in their capital raising for bitcoin acquisition. this could lead to some cautiousness among investors who are not fully convinced by mstr's bitcoin-centric approach.
Trustworthiness
MedPrice Direction
NeutralSchiff's criticism doesn't directly impact bitcoin's price in the short term, as it's focused on mstr's specific strategy. however, if his arguments gain traction and lead to a sell-off in mstr stock, it could indirectly create negative sentiment for bitcoin. conversely, the bitcoin community's continued support for mstr's strategy suggests that this criticism may not significantly sway broader market sentiment.
Time Effect
LongThe long-term effect depends on whether microstrategy's strategy proves successful or if schiff's criticisms highlight a sustainable flaw. if mstr continues to acquire bitcoin and its value increases, the strategy might be vindicated. if the discount strategy leads to significant shareholder dilution or financial distress for mstr, schiff's points could become more relevant over time, potentially affecting investor confidence in similar corporate bitcoin strategies.
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Article Content:
Cover image via U.Today Dealing with a discount A 1,550 BTC buy Advertisement Euro Pacific Capital CEO and prominent gold bug Peter Schiff has once again argued that Strategy's "infinite money glitch" is actually fundamentally broken. Almost all articles regarding criticism of $MSTR selling stock to buy Bitcoin point to the fact that MSTR has always sold stock to buy Bitcoin. But that rationalization misses the point of the criticism. Past sales were done at a premium. Current sales are done at a discount. — Peter Schiff (@PeterSchiff) June 16, 2026 Dealing with a discount For years, Strategy successfully ran a "flywheel" strategy. The MSTR stock would trade at a massive premium relative to the actual value of the Bitcoin it held on its balance sheet (its Net Asset Value, or NAV). HOT Stories Schiff Calls Out Bad Math in Strategy's Bitcoin Plan Crypto Miner MARA Buys 1,000 Bitcoin Saylor would issue and sell new MSTR stock or convertible debt at this inflated premium. Advertisement You Might Also Like Thu, 06/04/2026 - 13:39 74% of Strategy's Bitcoin Holdings Enter Loss Territory By Caroline Amosun The stock was sold at a premium, and each new share issued actually increased the amount of "Bitcoin-per-share." However, as Schiff has noted, current sales are done at a discount. "Past sales were done at a premium. Current sales are done at a discount," he noted. Advertisement A 1,550 BTC buy In early June, Saylor announced that MicroStrategy had purchased an additional 1,550 BTC for $101 million. The Bitcoin community celebrated the buy, but Schiff claims that it was a failure for shareholders. In order to get the $101 million to buy those coins, Saylor had to issue and sell MSTR at a heavily discounted price. The company had to issue more shares proportionally than the amount of Bitcoin it bought. Schiff notes that the move "actually reduced Bitcoin per share, creating a negative Bitcoin yield." Schiff pointed out that MicroStrategy was almost immediately down over $6 million on that specific 1,550 BTC purchase as the market pulled back. Now, there is an apparent lack of confidence in the debt vehicle. If STRC doesn't return to par, MicroStrategy might have to raise its dividend. Schiff notes that the strictly rational move right now would be to "sell Bitcoin and buy back discounted stock." Owning MSTR is the "worst way" to be bullish on BTC Schiff’s ultimate takeaway is a warning to investors. Even if you are incredibly bullish on the price of Bitcoin, holding MSTR is a losing bet. "Almost 60% of Bitcoiners believe that even if Bitcoin crashes to $1,000... bankrupting $MSTR... I'm still wrong. That's not rational. That's a cult," he said. #Bitcoin News #Peter Schiff