Prominent gold advocate and Bitcoin critic Peter Schiff has raised concerns that Strategy, the company led by executive chairman Michael Saylor, may be forced to sell additional Bitcoin and shares of its common stock to support the price of its STRC preferred stock. Despite recent asset sales and share repurchases, STRC has continued to trade below $95, well short of the company’s $100 target.

Recent Asset Sales and Buybacks

Strategy recently sold 1,690 Bitcoin for approximately $108.6 million. The proceeds were used to repurchase about 1.15 million shares of STRC. This marked the third repurchase under the company’s $1 billion buyback program for the preferred stock.

In a separate move, the firm sold roughly 6.59 million shares of its common stock, generating $653.1 million. Nearly all of those funds, about $650 million, were added to the company’s dollar reserves, bringing the total to $4.65 billion.

Schiff argued that these steps have not been enough to lift STRC closer to its target price. He stated that further sales of Bitcoin and discounted common shares would likely be required.

Criticism of Capital Strategy

Schiff has intensified his criticism of Strategy’s capital management approach in recent weeks. He has described the preferred stock as an ongoing burden that could compel the company into repeated Bitcoin sales and dilution of its common shareholder base. In his view, the pattern of selling Bitcoin and common shares to defend STRC reduces direct Bitcoin exposure and places additional pressure on existing investors.

He has also linked the situation to broader market dynamics, noting that gold has climbed above $4,300 while Bitcoin has traded near $62,851. Schiff has argued that Bitcoin tends to move in the opposite direction of gold and that renewed strength in the precious metal could weigh further on Bitcoin prices.

Strategy’s Focus on Digital Credit

Strategy has positioned STRC as a central element of what Saylor has called its “digital credit” model. The preferred stock is intended to support capital and liquidity management. During a July earnings call, Saylor said the company remains tightly focused on the product, internally referred to as Stretch, and is seeking investors willing to purchase the shares at various price levels, including below $99, to help stabilize and move the price back toward $100.

Saylor has previously indicated that the ability to sell Bitcoin when needed is important for continuing to issue digital credit through the preferred stock. The company has cited reduced confidence among some lenders in Bitcoin as collateral as a factor in recent decisions to convert Bitcoin holdings into cash.

The contrast between Schiff’s warnings and Strategy’s stated strategy underscores an ongoing debate over the sustainability of the firm’s approach to managing its Bitcoin reserves and preferred stock. Market participants continue to watch whether further sales will be required to support STRC and how those decisions may affect Bitcoin and the company’s common shares.