MSTR Stock Drops Over 80% From Peak – Peter Schiff Questions Strategy’s Bitcoin Play

• Shares of Strategy have slumped to a 28-month low. 
• Bitcoin has slipped below the $60,000 mark to its lowest level since October 2024.
• According to The Block, Strategy has an estimated $14 billion in unrealized losses on its Bitcoin holdings as the cryptocurrency selloff intensifies.

Strategy (MSTR) shares have plunged more than 81% from their July 2025 high of $457.22 as the prolonged selloff in Bitcoin (BTC) has weighed heavily on the Bitcoin treasury company. The slump has given Bitcoin critic Peter Schiff fresh ammunition.

The Euro Pacific Capital CEO and Chief Global Strategist believes that Strategy should sell a portion of its Bitcoin holdings and use the proceeds to repurchase its own shares. His rationale centers on Strategy’s market valuation. The longtime skeptic believes the company can create shareholder value by reducing its share count if MSTR trades below the value implied by its Bitcoin holdings, rather than continuing to accumulate more BTC.

“The best way to create shareholder value would be to sell Bitcoin to buy back shares until the discount is closed," Schiff wrote in a post on X on Thursday, noting that the continued decline in BTC prices has led to a massive bleed.

MSTR Stock: Why It’s Under Pressure

Shares of Strategy have slumped to a 28-month low as Bitcoin has slipped below $60,000, trading at its lowest level since October 2024.

"$MSTR continues to melt down. The share price just fell below $85.50. It's likely that the stock will soon trade at a massive 40% discount to its Bitcoin per share,” Schiff said.

According to The Block, Strategy has an estimated $14 billion in unrealized losses on its Bitcoin holdings as the cryptocurrency selloff intensifies. The company holds 847,363 BTC as of June 26, worth roughly $50.7 billion at current prices, and has cash reserves of about $1.4 billion as of June 21.

Strategy has historically funded most of its Bitcoin accumulation by issuing new equity and convertible securities while its stock traded at a premium to its Bitcoin holdings. If that premium reduces or remains at a discount for a longer period of time, it makes it harder for the company to raise capital using the same strategy, and hence sparks debate on capital allocation.

Analysts Warn Of Funding Risk

Entrepreneur and cryptocurrency investor Vinny Lingham outlined a bearish scenario for Strategy in the Unchained podcast. “The moment MSTR trades at a discount he cannot raise more cash. He is locked out. He cannot sell MSTR. He cannot sell STRC. Then he starts running out of cash. Call it nine months, eight months, seven months," he said.

“The market prices this in well in advance. The biggest buyer of Bitcoin is being removed. People selling Bitcoin are going to push the price down," he explained.

Earlier this week, CryptoQuant urged the company to pause Bitcoin purchases and rebuild cash reserves while its variable-rate perpetual preferred stock (STRC) traded below the $100 par value it is designed to maintain.

“Strategy should develop a systematic, fundamental-driven approach to bitcoin purchase timing rather than buying whenever capital is available,” Julio Moreno, head of research at the analytics firm, said.

MSTR Stock: Retail Sentiment Turns Neutral

On Stocktwits, retail sentiment around MSTR declined from ‘bullish’ to ‘neutral’ over 24 hours as the company’s shares slid below the $100 level.

The stock jumped to the top trending ticker on the platform, with retail chatter surging to ‘extremely high’ levels.

One user echoed the broader market sentiment, saying, “Saylor should sell bitcoin and buy back shares.”

Another bearish user said, “bankrutcy imminent.”

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