Peter Schiff Says Strategy’s MSTR Rebound May Be a Mirage, Warns of ‘Death Spiral’ if Bitcoin Rally Ends
Summary
- Peter Schiff said MSTR’s recent stock rebound may have been driven by short covering.
- He said Bitcoin (BTC)’s recent gains are temporary and that Strategy could fall into a death spiral if the rally ends.
- Schiff has said the preferred-stock dividend burden and funding structure could weigh on the company if Bitcoin prices decline.
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Peter Schiff, a prominent Bitcoin skeptic, said Strategy’s recent rebound in its stock price may have been driven by short covering.
Cointelegraph reported on Aug. 27 that Schiff said short sellers closing their positions may have helped fuel MSTR’s recent advance.
He also maintained his longstanding view that Bitcoin’s latest gains are temporary. If the rally ends, Strategy’s capital-raising structure could come under pressure again and push the company into a “death spiral.”
Schiff has repeatedly argued that Strategy’s preferred-stock dividend burden and funding structure could become a strain on the company if Bitcoin prices fall. Some market participants have pushed back on that view, citing the company’s cash reserves and the absence of any forced maturity on its preferred shares.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.