Web3: Media Reports Schiff Says Saylor May Need to Continue Selling Bitcoin
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CoinWorld reports:
According to foreign media reports, long-time Bitcoin critic Peter Schiff has once again pointed his finger at Strategy's financing model. He believes that if the company wants to push the price of its preferred security STRC back to around $100, it may need to continue selling more Bitcoin and raise funds by selling common stock at a discount.
Schiff Criticizes Financing Structure Again
On Thursday, Schiff posted on the X platform that despite Strategy raising cash through the sale of Bitcoin and MSTR stock and repurchasing STRC, the price of STRC remains below $95. He concluded that the company may need to sell larger assets in the future to bring STRC back to the target range.
He also stated that this approach would put pressure on Bitcoin and MSTR. As a long-term Bitcoin bear and gold supporter, Schiff has been continuously criticizing Strategy's capital management strategy in recent weeks.
Recently Sold $653 Million in Stock
Reports indicate that Strategy recently sold about $653 million in MSTR common stock to bolster the company's dollar reserves. This action coincided with the company's capital arrangements around STRC, keeping external attention on the relationship between its financing and holdings.
During the earnings call in July, Michael Saylor described STRC as a crucial part of the company's "digital credit" strategy and stated that the company is focusing on enhancing the liquidity and stability of such securities.
Focus on Continued Selling Pressure
In June, Saylor stated that the ability to sell Bitcoin is a necessary condition for the company to continue issuing digital credit instruments. However, Schiff believes that recent selling actions have already indicated that this model is under pressure.
On August 1, he posted that merely the market's expectation that Strategy might continue to sell Bitcoin could lower Bitcoin prices, meaning that if the company wants to raise more funds, the actual amount of Bitcoin it needs to sell may exceed initial estimates.
On August 3, Schiff described STRC as a burden on MSTR, believing that such preferred securities could force Strategy to continue selling Bitcoin and further dilute the equity of common stock shareholders.
Currently, the reports mainly present Schiff's public criticisms and Strategy's recent financing and holding operations. The market's focus remains on whether the future price performance of STRC will continue to affect Strategy's Bitcoin disposal pace and MSTR valuation.
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