Peter Schiff warned that Michael Saylor may need to sell more Bitcoin and Strategy shares if the company wants to push its STRC preferred stock back toward its $100 target. STRC has continued trading below $95 despite Strategy using asset-sale proceeds to buy back shares.
Strategy Funds STRC Buybacks
Strategy sold 1,690 Bitcoin for $108.6 million and used the proceeds to repurchase about 1.15 million STRC shares. The company also sold 6.59 million MSTR shares for $653.1 million, with about $650 million added to its dollar reserve, bringing the balance to $4.65 billion.
Related: Tristan Thompson Backs Bitcoin, Says Daily Buying Builds Long-Term Wealth
The latest STRC repurchase is the third under Strategy’s $1 billion buyback program. Schiff said the company could need more Bitcoin and MSTR sales to support the preferred stock, potentially putting additional pressure on Bitcoin.
Schiff Points to Gold Strength
Schiff also linked Bitcoin’s weakness to gold’s recent rally. Gold climbed above $4,300 while Bitcoin traded near $62,851.
“When gold initially broke out, Bitcoin broke down. When gold corrected, that’s when Bitcoin bounced,” Schiff said.
He argues that continued strength in gold could weigh on Bitcoin. At the same time, weaker US jobs data has increased expectations for easier Federal Reserve policy, leaving markets with competing signals as Strategy manages its Bitcoin holdings and preferred stock.
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