Peter Schiff Slams Strategy’s Bitcoin Buy as Dilution “Damage Control”

Peter Schiff, a long-time Bitcoin critic, said Strategy Inc.’s (MSTR) latest Bitcoin buy is “damage control.” He argued the company’s move is meant to calm investors after earlier selling. On June 8, Strategy reported buying 1,550 BTC for about $101 million, following the sale of 32 BTC for $2.5 million between May 26 and May 31 (its first BTC sale since 2022). The purchase was paired with a $100 million increase in cash reserves, lifting them to $1 billion. Schiff’s core claim is that both actions were financed by issuing new MSTR shares. He said this reduces the amount of Bitcoin represented by each existing share—i.e., dilution—if MSTR sells stock at a discount versus Bitcoin’s value. He added that Strategy’s 845,256 BTC position (worth over $54 billion) is too large to exit without destabilizing markets, so the firm may need to keep issuing stock to fund more buys. Trading takeaway for crypto markets: this is primarily a capital-structure and sentiment story around Strategy’s Bitcoin buy, not a direct change in Bitcoin fundamentals. It can, however, affect short-term flows and risk perception for MSTR-related traders if dilution concerns dominate.