Ah, the theater of finance! Euro Pacific Capital’s grand maestro, Peter Schiff, the eternal gold bug, has once again taken to the stage, his baton poised to conduct a symphony of scorn. This time, his target is the “infinite money glitch” of Strategy, a scheme so audacious it would make even the Master and Margarita blush with envy. “Fundamentally broken,” he declares, his voice dripping with the sarcasm of a man who has seen too many illusions shattered.
Almost all articles regarding criticism of $MSTR selling stock to buy Bitcoin point to the fact that MSTR has always sold stock to buy Bitcoin. But that rationalization misses the point of the criticism. Past sales were done at a premium. Current sales are done at a discount.
– Peter Schiff (@PeterSchiff) June 16, 2026
The Discounted Dance of Despair
For years, Strategy waltzed through the markets with a “flywheel” strategy, a dance so graceful it seemed to defy gravity. The MSTR stock, like a magician’s hat, pulled out premiums that bore no relation to the humble Bitcoin nestled within its balance sheet (its Net Asset Value, or NAV, for the uninitiated).
Saylor, the ringmaster of this circus, would issue and sell new MSTR stock or convertible debt at these inflated premiums. Each new share, like a rabbit from a hat, increased the “Bitcoin-per-share.” But, as Schiff so gleefully points out, the music has stopped. “Past sales were done at a premium. Current sales are done at a discount,” he intones, his voice a mix of triumph and despair.
A 1,550 BTC Buy: The Emperor’s New Clothes
In early June, Saylor announced with great fanfare that MicroStrategy had purchased an additional 1,550 BTC for $101 million. The Bitcoin community, ever the optimists, celebrated this move as a triumph. But Schiff, ever the skeptic, saw it for what it was: a pyrrhic victory. To raise the $101 million, Saylor had to sell MSTR at a heavily discounted price, issuing more shares than the Bitcoin purchased. The result? A negative Bitcoin yield, a financial farce that would make even Azazello raise an eyebrow.
Schiff notes that MicroStrategy was almost immediately down over $6 million on that specific 1,550 BTC purchase as the market pulled back. Now, the debt vehicle teeters on the edge, and if STRC doesn’t return to par, MicroStrategy might have to raise its dividend. “The strictly rational move right now would be to sell Bitcoin and buy back discounted stock,” Schiff advises, his tone laced with the irony of a man who knows his advice will fall on deaf ears.
Owning MSTR, he concludes, is the “worst way” to be bullish on BTC. “Almost 60% of Bitcoiners believe that even if Bitcoin crashes to $1,000… bankrupting $MSTR… I’m still wrong. That’s not rational. That’s a cult,” he declares, his voice echoing through the halls of financial folly. And so, the curtain falls on another act in the grand theater of finance, leaving us to wonder: who, in this tale, is the true magician, and who is merely a player in a game of illusions?
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2026-06-16 13:38