Peter Schiff, chief economist and global strategist at Europac, raised the alarm about Strategy Inc. (NASDAQ: MSTR) It plans to use some of its cash reserves to pay off part of its debt.
On May 26, Schiff raised concerns after the strategy used $1.38 billion in cash reserves to buy back $1.5 billion worth of convertible bonds due in 2029. With the strategy now holding a cash reserve of about $871 million, Schiff questioned whether it has enough capital to sustain aggressive Bitcoin (Bitcoin) Accumulation plan.
“You’re out of money. What are you going to sell next so the wheels don’t fall off?” Chef He replied To Michael Saylor’s post
Previously, he was a chef Argue That Saylor was running a Ponzi scheme to accumulate more Bitcoin. As such, Schiff predicted that Saylor could eventually suspend the dividend and let STRC’s preferred stock collapse rather than sell Bitcoin to fulfill his obligations to investors.
The economist made the claims after Saylor admitted during Strategy’s Q1 2026 earnings call that the company could sell Bitcoin if necessary to fund STRC’s dividend payments.
What is Saylor’s defense against Schiff’s claims?
However, the strategy’s latest capital update appears to contradict Schiff’s concerns. The company eliminated $1.5 billion in debt for just $1.38 billion, saving nearly $120 million. As a result, its total convertible debt fell from $8.2 billion to $6.7 billion.
The company then raised $2 billion through Fresh STRC Sales and proceeds were used to purchase an additional 24,869 Bitcoin. Year-to-date, the company has generated $6.8 billion in BTC gains and a BTC return of 13.3%.
“These demonstrate the discretionary transactions we have built into the strategy’s capital structure and our dynamic multivariate capital allocation model. We remain focused on growing Bitcoin per share for our common shareholders over the long term while maintaining a strong balance sheet for our digital credit investors,” male.
Thus, it appears that Saylor’s capital machine is running strong, accumulating more Bitcoin. As of press time, the company owned 843,738 bitcoins, worth approximately $65 billion.
