Peter Schiff Says MicroStrategy Lost Its Bitcoin-Buying Power

Peter Schiff says MicroStrategy has pulled its Stretch (STRC) preferred stock back toward its $100 par value. However, he argues the company has lost the issuance channel that funded its Bitcoin purchases.

Even so, Strategy has kept adding Bitcoin, funding its latest purchase with proceeds from common stock sales.

Schiff Credits Buybacks and a Bitcoin Rebound for STRC’s Recovery

Schiff, a longtime Bitcoin critic, made the case on his October 2 podcast. He said STRC trades near $99.4, a recovery he admitted surprised him.

He credited Strategy’s weekly STRC buybacks and Bitcoin’s rally for the move. Schiff said that rally may have restored some confidence in the stock or triggered short covering.

The preferred stock had sunk to about $75 earlier this year, which CEO Phong Le blamed on unexpected leverage.

Referring to Executive Chairman Michael Saylor, Schiff argued that the rebound has not reopened Strategy’s key funding route.

“There’s no way that he’s going to be able to start selling more Stretch; that means he’s not going to be able to raise money to really start buying more Bitcoin,” Schiff said.

He added that Strategy has raised enough cash to keep paying STRC dividends a little longer before it runs out. However, he said the company no longer has the machinery to buy more Bitcoin.

Saylor, for his part, pointed to calmer trading in the stock. He said STRC’s 30-day historical volatility stood at 9% as of October 2. That put it below the 10% reading for the SPDR S&P 500 ETF (SPY).

A milestone for Digital Credit: $STRC’s 30-day historical volatility is now 9%, below $SPY. We’re harnessing the power of Bitcoin while reducing price volatility for income investors. This is what financial engineering should do. pic.twitter.com/Jka7oOesa1

— Michael Saylor (@saylor) October 3, 2026

Common Stock Has Funded Most of Strategy’s Bitcoin Buys Since May

Strategy’s weekly filings support part of Schiff’s argument. The company last sold STRC through its at-the-market program between May 11 and 17, raising about $1.95 billion.

Its remaining STRC capacity has held at about $17.51 billion in every filing since, meaning no further shares were sold.

Strategy then paused Bitcoin buying for 10 weeks over the summer, selling coins instead to fund dividends and STRC buybacks. When it resumed in late August, it relied on other funding sources.

It sold class A common stock (MSTR) to fund 4,603 BTC that week and 1,665 BTC in late September. In between, it spent $75.7 million from its USD Cash account on 950 BTC.

Common stock proceeds also flow back into STRC. Between September 21 and 27, Strategy used $103.5 million from MSTR sales to repurchase STRC shares.

Strategy also held a $5.02 billion USD Reserve as of September 27. The company says the pool is meant to support preferred dividends and debt interest.

Schiff expects Bitcoin to roll over once tech stocks pull back. Strategy usually reports purchases on Mondays, so its next filing will show whether common stock sales keep funding its buys.

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