Peter Schiff warns MSTR slide could force Bitcoin sell-off

The company’s stock performance has hit a two-year low, shedding 7.2% on June 24 to reach $96.27. This 38% decline over the last six months comes as market participants scrutinize the firm’s capital allocation. While MicroStrategy recently raised $335.5 million through share sales—using $35 million of that to acquire 520 BTC—analysts at CryptoQuant are flagging significant liquidity risks. With annual dividend obligations for preferred stock products reaching $1.2 billion, the firm's cash reserves have dwindled by 38% this year.

Schiff argues that if the discount between the company’s market value and its underlying assets remains wide, buybacks become the only logical defense, even if they necessitate selling off Bitcoin. This potential liquidation, he warns, would likely trigger a broader market crash. Meanwhile, CryptoQuant has urged a pause in Bitcoin purchases, noting that dividend coverage has plummeted from seven years to just 14 months. The firm suggests that restoring a 24-month safety buffer would require an additional $2.8 billion in cash, a tall order given the current downward trajectory of the stock.