American economist Peter Schiff is warning about the future of Strategy (NASDAQ: MSTR), formerly MicroStrategy, arguing that the company’s financial structure is beginning to unravel as its stock continues a steep decline.
His remarks follow another turbulent trading session on Monday, during which MSTR closed at $171.42, down more than 3% after plunging as much as 12% intraday. The stock has now fallen 35% over the past month.
Schiff argued that Strategy is entering the early stages of collapse, claiming Michael Saylor is now selling stock not to buy more Bitcoin (BTC) but simply to raise dollars to cover interest and dividend obligations, signaling, in his view, a failing business model.
In an X post on December 1, he said the company is stuck issuing new shares to raise cash, then using that cash to buy low-yield Treasuries while taking on debt and preferred stock that cost far more.
“Today is the beginning of the end of MSTR. Saylor was forced to sell stock not to buy Bitcoin, but to buy U.S. dollars merely to fund MSTR’s interest and dividend obligations. The stock is broken. The business model is a fraud, and Saylor is the biggest con man on Wall Street,” Saylor said.
Schiff called the structure unsustainable and questioned how long investors will continue supporting a model built on rising liabilities and shareholder dilution, sustained largely by hopes that Bitcoin’s price will eventually mask the financial strain.
Strategy’s bearish sentiments
The latest pressure on Strategy stems from growing doubts about the durability of its Bitcoin-driven model. Sentiment worsened after CEO Phong Le said the company could sell some of its Bitcoin if the share price falls below its market-implied net asset value or if it can no longer raise capital through normal channels.
This marked a sharp departure from Strategy’s long-held commitment to never sell its Bitcoin reserves, unsettling investors who saw that stance as central to the company’s identity and valuation.
Concerns deepened after Strategy built a $1.44 billion cash reserve to secure dividend payments and future obligations. Although framed as prudent planning, many investors viewed it as preparation for a tougher environment, especially with Bitcoin still below $90,000.
At the same time, the broader crypto downturn has amplified the stock’s slide. Because Strategy’s valuation is closely tied to Bitcoin, weakness in digital assets has had an outsized effect, further pressured by the company’s leveraged exposure. Its market capitalization has now fallen to about $45 billion, below the value of its Bitcoin reserves.
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