Peter Schiff, an economist and global analyst at Europac, has raised concerns about Strategy Inc.’s (NASDAQ: MSTR) plans to use his savings to pay off part of his debt.
On May 26, Schiff raised his concerns after Strategy used $1.38 billion in cash reserves to resell $1.5 billion in convertible notes due in 2029. With Strategy now holding roughly $871 million in cash, Schiff questioned whether it has enough capital to support its aggressive Bitcoin (BTC) system of accumulation.
“Money is missing, what should you sell so that the wheels don’t fall off?” Schiff he answered to Michael Saylor X’s post.
In the past, Schiff was they argued that Saylor has been running a ponzi scheme to get more BTC. As such, Schiff predicted that Saylor could freeze dividends and allow STRC, which preferred to liquidate assets rather than sell Bitcoin, to honor its obligations to investors.
The financial analyst said this after Saylor admitted during Strategy’s Q1 2026 earnings call that the company may sell Bitcoin if needed to pay STRC’s dividend.
What is Saylor’s defense against Schiff’s claims?
However, the latest update to the Strategy appears to contradict Schiff’s concerns. The company left a debt of $1.5 billion for only $1.38 billion, saving about $120 million. As a result, its total revolving credit decreased from $8.2 billion to $6.7 billion.
The company raised $2 billion through a new offering The cost of STRC sell and use the money to buy an additional 24,869 Bitcoin. Year after year, the company has generated BTC 6.8 billion dollars with a BTC Yield of 13.3%.
“This event demonstrates the opportunity we have created to finance the Strategy and our flexible, diversified approach. We are focused on growing Bitcoin Per Share for our common stock over the long term while maintaining a safety report for Digital Credit investors,” Saylor. he said.
Therefore, Saylor’s main machine seems to be running strong, collecting more BTC. As of press time, the company held 843,738 BTC, worth about $65 billion.
