Peter Schiff dey warn about Bitcoin strategy plan as 11.5% yield fit cause possible BTC sell pressure
Peter Schiff warn say Strategy Bitcoin plan dey face increasing pressure because Strategy dey rely on preferred shares wey dey pay 11.5% yield. E talk say the high fixed payout fit force dem raise more capital or issue more preferred shares, and that fit mean say dem go need sell Bitcoin to meet obligations. Schiff main point na structural: as Strategy sell more preferred shares, Bitcoin go need to rise more to cover the yield.
E also talk say Strategy no get normal corporate earnings to comfortably fund these distributions. If the structure break, e fit increase chance say dem go be forced to monetize Bitcoin, wey go put pressure on BTC and weaken Strategy balance sheet. E add say if preferred shares fall, Strategy fit need to offer higher yield, and that fit make the "death spiral" worse.
For crypto traders, wetin matter be say the Strategy Bitcoin plan fit turn into a sentiment and positioning risk for Bitcoin, especially if BTC momentum weak and markets start price in forced selling around high-yield corporate structures.
Bearish
Schiff argument na center for one mechanism we fit increase Bitcoin selling pressure if Strategy must keep issuing 11.5% yield preferred shares (or raise yields) and no get enough operating cash flows to pay payouts. For short term, this fit hurt BTC sentiment if traders interpret am as one possible path to forced BTC monetization. For long term, market fit reprice the corporate holder risk premium—higher funding costs and rollover risk fit make downside scenarios more “financable,” increasing the chance say future BTC selling go become part of the narrative. If BTC momentum weaken, these concerns fit grow through positioning and options/derivatives expectations wey link to “event risk.”