Bitcoin News: Peter Schiff Says Strategy’s Latest BTC Buy Dilutes Shareholders

Key Insights:

• Bitcoin news: Strategy bought 1,550 BTC for about $101 million, raising its total holdings to 845,256 BTC.
• Peter Schiff says Strategy’s latest share issuance reduces Bitcoin exposure for common shareholders.
• Strategy increased its US dollar reserves by $100 million, bringing the total cash reserve to $1 billion.

Peter Schiff has criticized Strategy’s latest Bitcoin purchase, arguing that the company diluted common shareholders to finance the deal. Strategy bought 1,550 BTC for about $101.3 million between June 1 and June 7. The company raised the funds after selling more than 1.4 million common shares through its at-the-market program.

Schiff claims the new share issuance reduced the amount of Bitcoin represented by each MSTR share. The development renewed debate over whether Strategy’s capital-raising model still benefits common shareholders.

Bitcoin News: Schiff Questions Bitcoin Yield

Bitcoin news turned toward shareholder dilution after Schiff challenged Strategy’s latest funding decision. He said the strategy previously created a positive Bitcoin yield by selling stock above the value of its underlying assets. That Bitcoin news allowed the company to acquire Bitcoin faster than it expanded its common share count. Under that structure, each share could represent a growing claim on the company’s Bitcoin reserves.

Schiff argues that current market conditions have weakened that model. In his view, Strategy now issues common shares on terms that reduce Bitcoin exposure per share. He described the result as a negative Bitcoin yield for existing holders.

Schiff also accused Executive Chairman Michael Saylor of prioritizing continued Bitcoin purchases over common shareholder value. Strategy has not publicly accepted Schiff’s interpretation of the transaction.

Strategy Funds 1,550 BTC Buy With Stock Sales

Strategy sold 1,409,600 MSTR shares between June 1 and June 7, raising about $181 million in net proceeds. It used part of that money to buy 1,550 Bitcoin at an average price of $65,332. The purchase lifted total holdings to 845,256 BTC, acquired for roughly $63.97 billion. Strategy’s average purchase price across those holdings now stands near $75,680 per Bitcoin.

Additionally, the company added $100 million to its dollar reserve, raising the balance to $1 billion. Strategy uses that reserve to support dividend obligations linked to its preferred securities. It did not report preferred-share sales during the latest weekly period. Instead, common stock sales supplied the capital for the Bitcoin purchase and reserve increase. That financing structure sits at the center of Schiff’s dilution argument.

Schiff Targets Missing Bitcoin Yield Disclosure

Schiff also focused on the absence of Strategy’s Bitcoin yield figure from the latest purchase announcement. Strategy has often used that metric to measure changes in Bitcoin holdings against its diluted common share count. Schiff said the omission suggested the company could not present the transaction as accretive for shareholders. He then declared that Strategy’s Bitcoin acquisition model had reached its limit.

A missing figure alone does not confirm that the purchase created a negative yield. Investors would need updated diluted share data and Strategy’s full calculation method to verify the result. Still, the sale of more than 1.4 million shares gives Schiff a basis for raising the dilution question. His criticism focuses on per-share Bitcoin exposure rather than the increase in Strategy’s total holdings.

Latest Buy Follows Strategy’s Rare BTC Sale

Strategy’s purchase came one week after the company disclosed a sale of 32 BTC. It sold those coins between May 26 and May 31 for about $2.5 million at an average price of $77,135. Strategy said it expected to use the proceeds for preferred-stock distributions. The transaction marked its first disclosed Bitcoin sale since December 2022.

The 1,550 BTC purchase far exceeded the earlier 32 BTC sale and pushed total holdings to a new record. Bitcoin also recovered above $63,000 on Monday after falling below $60,000 during the previous week.

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