PiCK
Peter Schiff Says Strategy’s Bitcoin Monetization Plan Could Trigger a Market Meltdown
JH Kim
Summary
- Peter Schiff said Strategy’s new Bitcoin (BTC) monetization program could trigger a sharp market selloff.
- He said Strategy could sell Bitcoin to raise as much as $1.25 billion to boost dollar reserves, pay preferred stock dividends and interest on debt, and fund share buybacks.
- Schiff said the program could create a vicious cycle of a sharp drop in Bitcoin prices and additional Bitcoin selling.
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 selloff.
In a post on X on June 29, Schiff wrote that “Strategy is now a Bitcoin seller.” He said the company could sell Bitcoin to raise as much as $1.25 billion to boost its dollar reserves, pay preferred stock dividends and interest on debt, and fund $1 billion in preferred share buybacks and $1 billion in common stock repurchases.
Schiff argued that such a program could drive Bitcoin prices sharply lower. That, in turn, could force Strategy to sell even more Bitcoin, creating a vicious cycle.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.