Peter Schiff Warns STRC Crash Could Come Before Strategy Has The Chance To Sell Its Bitcoin

• Peter Schiff cautioned that Strategy would likely suspend its STRC dividend and let the company collapse before it sells any substantial Bitcoin assets to satisfy its preferred shareholder requirements.
• On-chain analyst Darkfost brushed off the uproar by noting that the prospect of Bitcoin sales was already stated in Strategy’s SEC 8-K filing.
• Michael Saylor, in the Q1 earnings call, brushed off the idea of a fixed 1.0x breakeven level, saying that if Strategy boosted the “Bitcoin per share” value, it could sell Bitcoin or use the revenue to reduce debt.

Peter Schiff voiced concerns on Wednesday about Michael Saylor's plans to sell Bitcoin (BTC) to meet Strategy's (MSTR) commitments to its STRC preferred stock payments. He cautioned that preferred shareholders might have to foot the bill.

In a post on X, the veteran gold advocate and longtime Bitcoin critic argued that if Strategy ever faced a crunch, Saylor would be more likely to suspend the STRC dividend and let the stock crash rather than liquidate a major portion of its Bitcoin assets. Schiff described the company’s declared desire to sell Bitcoin as a hollow gesture intended to extend what he dubbed a “Ponzi” framework.

Saylor’s move caused much concern among the crypto community, but on-chain analyst Darkfost resisted the broader debate, noting that the potential for Bitcoin sales was “Nothing new.” He added that the possibility had already been outlined in a Form 8-K filed with the SEC in April 2025, when the business said it may have been forced to sell Bitcoin if cash flows were inadequate to meet debt payments or sustain its operations. Darkfost said Saylor’s statements on the just-released Q1 results call brought to light what had been buried in regulatory filings.

Strategy stated in its SEC filing that it may have to sell Bitcoin if cash flow is not enough to pay debt commitments or support operations. The document also cautioned that refinancing risks, higher borrowing rates, or increased financial pressure might compel the business to raise cash, restructure debt, or sell assets, including its BTC holdings.

What Saylor Actually Said

During Strategy's first-quarter results call, Executive Chairman Michael Saylor stated that the business may sell Bitcoin or use the proceeds to repay debt if doing so would raise the "Bitcoin per share" value for shareholders. He also denied the notion that the corporation runs with a set breakeven point, referring to the frequently publicized "1.0x" level as a misunderstanding.

MSTR’s stock was down over 1% in midday trade. Despite the earnings setback, retail sentiment on Stocktwits around MSTR remained in the ‘bullish’ zone, while chatter stayed at ‘high’ levels over the past day.

Wall Street analysts remained split on the company. BTIG boosted its price target for MSTR to $350 from $250 while maintaining a ‘Buy’ rating, citing management's readiness to potentially sell Bitcoin as a major takeaway from the results call, while Benchmark reduced the firm's Strategy price target to $570 from $705 and maintained a ‘Buy’ rating on the shares. 

Read also: Oppenheimer Makes Big Bet On WULF With 45% Stake Increase — Retail Traders Lookout For A Short Squeeze

For updates and corrections, email newsroom[at]stocktwits[dot]com.