Peter Schiff Warns Strategy Could Sell Bitcoin as MSTR Drops
Bitcoin skeptic Peter Schiff says Strategy (the company behind MSTR) could eventually sell part of its Bitcoin holdings if its stock keeps falling. He argues sustained pressure from short sellers could make buybacks less attractive than liquidating Bitcoin, which would likely weigh on BTC.
Schiff’s comments come as MSTR trades near multi-year lows. On Jun 24, 2026, the stock was around $96.27, down about 7.2% on the day, with nearly 20% losses across five trading days and more than 38% over six months.
Recent filings and disclosures add fuel to the debate. Strategy sold about 2.71M shares of MSTR, raising roughly $335.5M, and used about $35M to buy 520 BTC. Meanwhile, it increased U.S. cash reserves by around $300M to about $1.4B, citing the needs of its Digital Credit securities.
CryptoQuant urged Strategy to pause further Bitcoin purchases and rebuild liquidity. It estimates annualized dividend obligations tied to the preferred stock product STRC near $1.2B, with dividend coverage falling to roughly 14 months. CryptoQuant says coverage would need about $2.8B cash to return to ~24 months and argues BTC buys are no longer a major price catalyst.
Schiff also extended criticism to STRC, claiming the product’s risk and advertised dividend income do not match current performance as STRC holders face shrinking yields and market discount dynamics.
Bearish
This is bearish because it highlights a potential link between equity weakness (MSTR) and Bitcoin selling pressure. Schiff’s core claim is that if Strategy’s share price falls enough, the company could prefer selling BTC to support buybacks or manage corporate obligations. That narrative typically raises traders’ fear of forced or opportunistic BTC liquidations, which can increase downside pressure on BTC in the short term.
In the short run, MSTR’s continued slide combined with concerns about STRC dividend coverage can accelerate risk-off positioning across BTC-related proxies (including MSTR/Strategy). Even though Strategy recently bought BTC with part of stock-sale proceeds, the market focus may shift from “accumulation” to “liquidity management” if dividend obligations loom larger.
In the long run, credibility matters. If investors conclude that Strategy’s capital allocation is constrained by preferred-stock liabilities (as CryptoQuant argues), the company may buy less BTC and hold more cash—reducing demand support. Similar situations in markets where leveraged or treasury-linked vehicles face funding obligations have historically led to volatility spikes around liquidity headlines.
Net: until there is clarity on cash coverage and whether STRC obligations can be met without changing the BTC treasury strategy, traders are more likely to price in a higher probability of BTC selling events, hence the bearish bias.