Strategy Could Sell $3.25 Billion in Bitcoin Under New Plan, Peter Schiff Warns

Schiff Sounds Alarm as Strategy’s Massive Bitcoin Sale Potential Raises Fears of Market Shock

Strategy Inc. (Nasdaq: MSTR)’s decision to authorize future bitcoin sales, announced Monday, has intensified fears that its treasury strategy could exert destabilizing pressure on the broader market.

Longtime bitcoin critic and gold advocate Peter Schiff argued on June 29 that even relatively small sales by BTC’s largest corporate holder can weigh on investor sentiment. He pointed to the disclosure of a 32 BTC sale earlier this month, which coincided with a sharp decline in bitcoin’s price.

“MSTR is now a bitcoin seller,” Schiff wrote, elaborating:

Under its just-announced ‘ Bitcoin Monetization Program’ it may sell bitcoin for three purposes: to raise up to $1.25B to fund its USD reserve, to pay preferred dividends & debt interest, and to fund $1B of preferred and $1B of common stock buybacks.”

The company’s new Digital Credit Capital Framework expands the circumstances under which bitcoin can be monetized, allowing sales to build a USD Reserve, support preferred dividends and interest payments, and finance share repurchases. Schiff said those authorizations represent a much larger potential source of selling pressure than many investors initially recognized.

“If Saylor crushed bitcoin when he announced the sale of just 32 bitcoin, imagine the impact of today’s announcement authorizing MSTR to sell $3.25B worth of bitcoin. At $60K, that’s over 54,000 bitcoin. Of course, as bitcoin falls, more must be sold to raise that dollar amount,” Schiff cautioned.

Schiff is receiving significant pushback from bitcoin advocates, financial analysts, and retail investors over his warnings about Strategy. Critics argue that he is overstating the risk of forced BTC sales, mischaracterizing the company’s capital structure, and overlooking mechanisms that may give management flexibility. Investors have added that Schiff’s long-standing criticism of digital assets weakens his credibility.

Saylor Pushes Back as Strategy’s Bitcoin Plan Sparks Market Tension

Strategy Executive Chairman Michael Saylor pushed back on concerns about bitcoin selling pressure by emphasizing Strategy’s liquidity position and ability to meet its financial obligations. The company reported a USD Reserve of approximately $2.55 billion as of June 29, 2026, including expected proceeds from unsettled at-the-market equity sales.

Saylor wrote:

“With $2.55B of USD Reserve and $1.25B of BTC monetization capacity for reserve-building, Strategy has $3.80B of dividend coverage, representing 25.9 months.”

Internal estimates place annual preferred dividend payments and interest expenses at roughly $1.76 billion, implying that the existing reserve alone covers about 17.4 months of obligations. Adding the authorized BTC monetization capacity extends that coverage to approximately 25.9 months.

Board authorization defines strict use cases for bitcoin sales, limiting monetization to reserve-building, servicing financial obligations, and supporting repurchase programs. Any use of bitcoin beyond these categories requires additional board approval.

Strategy clarified that the framework does not require bitcoin sales or establish a fixed timeline for monetization. Execution depends on market conditions, liquidity needs, tax considerations, legal requirements, and management’s assessment of capital efficiency.