- Bitcoin critic Peter Schiff advocates for Strategy to sell Bitcoin and buy back shares to close a widening valuation gap.
- Strategy shares have plunged over 81% from their 2025 high as Bitcoin falls below $60,000, with an estimated $14 billion in unrealized losses.
- Analysts warn of potential funding risks, as the company’s ability to raise capital using its equity is threatened by the stock’s deep discount.
On Thursday, Bitcoin skeptic Peter Schiff used social media to pressure Strategy (MSTR) during a severe market downturn. In a post on X, the Euro Pacific Capital CEO argued the best way to create shareholder value would be for the company to sell Bitcoin and repurchase its own heavily discounted shares.
Consequently, Schiff’s critique gained traction as Strategy shares slumped to a 28-month low below $85.50. The stock’s collapse coincides with Bitcoin sinking below the $60,000 mark to its lowest level since October 2024.
Meanwhile, Strategy faces an estimated $14 billion in unrealized losses on its Bitcoin holdings according to data. The company holds roughly 847,363 BTC, valued at approximately $50.7 billion at current prices.
However, the prolonged discount in MSTR stock threatens its traditional capital-raising strategy. This situation sparks debate on capital allocation, as the company historically funded Bitcoin buys by issuing premium-priced equity.
Analysts are now warning of significant funding risk. In the Unchained podcast, investor Vinny Lingham outlined a bearish scenario where Strategy could be locked out from raising more cash within months.
Retail sentiment on trading platforms has turned neutral as the stock fell below $100. One user echoed Schiff’s sentiment, stating “Saylor should sell bitcoin and buy back shares.”
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