Bitcoin critic Peter Schiff has once again targeted Strategy after the company sold part of its Bitcoin holdings to fund dividend payments. The move has reignited debate over Strategy’s evolving treasury model, with Schiff arguing that the company has shifted away from its long-standing buy-and-hold approach.
While Schiff believes the latest Bitcoin sale exposes weaknesses in Strategy’s financial structure, the company maintains that the transaction is part of a broader capital management strategy rather than a change in its long-term commitment to Bitcoin.
Schiff criticizes Strategy’s latest Bitcoin sale
In a post shared on X on July 7, Peter Schiff described Strategy’s current business model as a “mid-cycle Ponzi.”
According to Schiff, the company has moved away from its earlier strategy of raising money through stock offerings and debt issuance to acquire more Bitcoin. Instead, he argues that Strategy is now relying on selling portions of its Bitcoin holdings to cover dividend payments, interest expenses, debt obligations, and potential share buybacks.
His comments came shortly after Strategy confirmed the sale of 3,588 BTC, valued at approximately $216 million.
Strategy says the sale supports dividend payments
The Bitcoin sale was disclosed as part of Strategy’s ongoing capital management plan.
The company explained that the proceeds were used to fund dividend payments linked to its Digital Credit securities, rather than signaling a departure from its long-term Bitcoin strategy.
Despite the transaction, Strategy remains the world’s largest publicly traded corporate Bitcoin holder.
Following the sale, the company reported that it still holds:
- 843,775 BTC
- $2.55 billion in U.S. dollar reserves
Although the sale represented only a small portion of its total holdings, it attracted significant attention because Strategy has long promoted Bitcoin as a long-term treasury asset.
New funding model draws investor attention
Schiff also questioned Strategy’s preferred stock structure, suggesting that it could become increasingly difficult to maintain if Bitcoin prices weaken.
He specifically pointed to the company’s STRC preferred shares, arguing that falling share prices could force Strategy to increase dividend yields in order to attract investors.
The criticism comes after Strategy introduced its Digital Credit Capital Framework, which authorizes up to $1.25 billion in potential Bitcoin sales.
Under the framework, Bitcoin sales may be used to support:
- Dividend payments
- Cash reserves
- Debt servicing
- Share buybacks
The company has also increased the dividend rate on its STRC preferred shares to 12%, while approving buyback programs for both preferred securities and Class A shares.
Michael Saylor defends limited Bitcoin sales
Executive Chairman Michael Saylor has previously defended the company’s ability to sell limited amounts of Bitcoin without abandoning its broader accumulation strategy.
According to Saylor, Strategy’s objective is to avoid becoming a net seller of Bitcoin rather than following an absolute “never sell” policy.
He previously stated that even if the company sold a small amount of Bitcoin, it intended to continue purchasing significantly more over time.
In his view, occasional sales are simply part of a larger capital management strategy designed to strengthen the company’s financial position while maintaining long-term exposure to Bitcoin.
Bitcoin remains stable despite criticism
Despite Schiff’s criticism, Bitcoin has remained relatively resilient.
At the time of reporting, Bitcoin was trading around $63,369, after fluctuating between $61,350 and $64,435 during the trading session.
Meanwhile, Strategy shares traded near $100.77, giving the company an approximate market capitalization of $33.65 billion.
Although Schiff warned that additional Bitcoin sales could place downward pressure on prices and potentially push BTC below $50,000, the broader market has yet to support that outlook.
In fact, Bitcoin recovered quickly after Strategy announced its latest sale, while several market participants continued expressing confidence in the cryptocurrency’s long-term prospects.
Investors continue monitoring Strategy’s treasury model
Strategy’s evolving treasury strategy remains closely watched across both traditional finance and the cryptocurrency market.
The company now combines multiple funding mechanisms, including:
- Bitcoin reserves
- Preferred stock offerings
- Dividend payments
- Share issuance
- Capital reserve management
Investors will likely continue monitoring whether future dividend obligations require additional Bitcoin sales and how those transactions affect both Strategy’s balance sheet and overall market sentiment.
Final thoughts
Peter Schiff’s latest criticism has once again placed Strategy’s Bitcoin treasury strategy under the spotlight. While Schiff believes the company’s recent Bitcoin sale signals weaknesses in its funding model, Strategy insists the move is part of a carefully planned capital management framework rather than a shift away from Bitcoin.
With more than 843,000 BTC still on its balance sheet, Strategy remains firmly committed to Bitcoin. However, future treasury decisions, dividend payments, and potential Bitcoin sales will continue to attract close attention from investors as the company balances long-term accumulation with growing financial obligations.
