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Strategy shares climbed to $137.40 as Bitcoin(BTC) moved above $80,000, but Peter Schiff renewed his “death spiral” warning while Michael Saylor answered with a bullish video.
Key Points:
- MSTR reached $137.40 during Bitcoin’s latest rebound above $80,000.
- Schiff said short-covering may explain part of the stock rally and maintained his “death spiral” thesis.
- Saylor responded by posting an AI-generated video of himself riding a bull.
MSTR Rally
MSTR rose sharply on Thursday as Strategy extended a rebound that began in early August, moving alongside Bitcoin’s recovery. Schiff questioned whether the move reflected lasting demand, suggesting instead that short sellers closing positions may have helped drive the advance.
Schiff wrote on X, “Not sure what’s behind today’s sharp $MSTR rally, though I suspect short-covering has a lot to do with it.”
He added that he still stood by his “death spiral” thesis, even if Strategy’s “life expectancy has been extended a bit by the temporary Bitcoin rally.” His argument focuses on preferred stock dividend obligations that the company partly funds through new share issuance.
Schiff Warning
Saylor took the opposite tone as the stock rallied. Strategy’s executive chairman posted an AI-generated clip showing himself riding a bull in Spain and captioned it, “Ride the ₿ull.”
The exchange reflects a wider disagreement over Strategy’s Bitcoin-focused capital structure.
Schiff sees the company’s preferred stock obligations and reliance on equity issuance as vulnerabilities if Bitcoin weakens, while Saylor continues to publicly tie the company’s outlook to confidence in the cryptocurrency.
The latest rally has also eased some concern that Strategy could eventually need to sell Bitcoin to meet its obligations, a risk tied to the company’s access to capital and the value of its Bitcoin holdings.
Schiff has made similar arguments for more than a year, previously calling MSTR a scam and warning that its preferred stock structure could trigger a “death spiral.” His latest comments repeat that long-running case, but this time they arrived while both MSTR and Bitcoin were moving sharply higher.
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Source: yellow.com