Peter Schiff Says Strategy’s Bitcoin Monetization Plan Could Trigger Market Crash
JH Kim
Summary
- Peter Schiff said Strategy’s new Bitcoin (BTC) monetization program could trigger a sharp market downturn.
- He said Strategy could sell Bitcoin to raise as much as $1.25 billion to bolster its dollar reserves, pay preferred stock dividends and interest on debt, and fund share buybacks.
- He said the program could trigger a sharp drop in Bitcoin prices and create a vicious cycle of additional Bitcoin sales by Strategy.
Forecast Trend Report by Period
Peter Schiff, chief executive officer of Euro Pacific Capital, said Strategy’s new Bitcoin monetization program could trigger a sharp market downturn.
On June 29, Schiff wrote on X, formerly known as Twitter, that "Strategy is now a seller of Bitcoin." He said the company could sell Bitcoin to raise as much as $1.25 billion to bolster its dollar reserves, pay preferred stock dividends and interest on debt, and fund $1 billion in preferred stock buybacks and $1 billion in common stock repurchases.
Schiff added that the program could send Bitcoin prices sharply lower, creating a vicious cycle that forces Strategy to sell even more Bitcoin.
JH Kim
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