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Currencies38934
Market Cap$ 2.70T-3.01%
24h Spot Volume$ 42.19B+4.96%
DominanceBTC57.51%-0.35%ETH10.85%-0.10%
ETH Gas0.06 Gwei
Aug 28, 2026
1min read
byEthan Mercer
forCoinpaper
<img src="https://xpertsstudio.com/wp-content/uploads/2026/08/c58f4c11-f096-4e11-ab3f-9f1bbdf4e560.png" alt="Bitcoin Above $80K Fuels MSTR Rally as Schiff Calls Strategy a “Death Spiral”” loading=”lazy”>
MicroStrategy (MSTR) traded near $137.40 as Bitcoin held above $80,000, with the stock rebound tracking BTC’s rally and US spot Bitcoin ETFs posting a nine-day inflow streak exceeding $3 billion. The company created a $1.6 billion cash pool for Bitcoin purchases, buybacks and treasury operations which eases immediate liquidity risk, but Peter Schiff warns that heavy BTC exposure and preferred-stock obligations still pose a potential death-spiral risk.
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Strategy shares have rebounded alongside Bitcoin, but Peter Schiff says the rally does not change his bearish view of Michael Saylor’s Bitcoin-heavy corporate model.
MSTR traded near $137.40 on Thursday, extending gains as Bitcoin held above $80,000. Schiff argued that part of the move may be driven by short covering rather than a meaningful improvement in Strategy’s fundamentals.
In his latest warning, Schiff again described Strategy as vulnerable to a potential “death spiral” because of its preferred-stock obligations and dependence on favorable capital-market conditions.
Bitcoin Strength Supports MSTR
The stock’s rebound has closely followed Bitcoin’s recovery. Earlier this month, MSTR shares climbed as Strategy’s Bitcoin holdings returned to a sizable unrealized profit.
Broader crypto demand has also improved. US spot Bitcoin ETFs recently recorded a nine-day inflow streak exceeding $3 billion, providing additional support for BTC prices and crypto-linked equities.
Strategy Adds $1.6B Liquidity Buffer
Schiff’s main concern is whether Strategy can continue meeting preferred dividends and other obligations if Bitcoin falls sharply or access to equity financing becomes less attractive.
Strategy has responded by increasing its financial flexibility. The company recently created a $1.6 billion cash pool for Bitcoin purchases, stock buybacks and other treasury operations
That liquidity weakens the immediate death-spiral argument, although Strategy remains highly exposed to Bitcoin volatility.
Saylor, meanwhile, has continued signaling confidence in the bullish case. For investors less familiar with the asset driving Strategy’s valuation, this Bitcoin guide explains the basics.
Source: cryptorank.io