Peter Schiff Says MSTR Stock Will Be Worthless as Saylor Touts STRC's ETF Wins
Strategy (MSTR) found itself pulled in two directions this week, as long-time Bitcoin critic Peter Schiff predicted the company's common equity will eventually be worthless, even as Michael Saylor pointed to a milestone suggesting the opposite.
Schiff's Renewed Attack on Strategy
Schiff, a well-known gold bull and one of Bitcoin's most persistent critics, renewed his criticism of Saylor on Thursday, arguing that Strategy's Bitcoin-driven capital structure has encouraged excessive speculation and could ultimately leave common shareholders with nothing. Speaking on Anthony Pompliano's podcast, Schiff also said he doesn't believe the current bear cycle is over, arguing that a break below $50,000 could trigger a deeper decline, with downside targets potentially extending to the $20,000–$30,000 range if key support levels fail.
Bitcoin was trading around $63,000 at the time, down more than 2% over 24 hours, with retail sentiment on Stocktwits shifting from bullish to neutral.
Saylor Highlights STRC's Institutional Reach
Schiff's comments landed the same week Saylor was promoting a different narrative. According to Saylor, Strategy's variable-rate perpetual preferred stock (STRC) had become the largest holding across three major US preferred-stock ETFs: BlackRock's iShares Preferred and Income Securities ETF (PFF), Virtus InfraCap's US Preferred Stock ETF (PFFA), and VanEck's Preferred Securities ex Financials ETF (PFXF) — together holding a combined $756 million in STRC. Saylor framed the placements as a sign that Strategy's Bitcoin-backed capital products are gaining traction with institutional investors.
A Split Between Institutional and Retail Sentiment
Despite the institutional interest, STRC's price closed near $86 on Friday, still more than 13% below its $100 par value. Retail sentiment on Stocktwits remains bearish and at extremely low activity levels, and retail ownership of the security has dropped from 78% in March to 71% by July, according to Strategy CEO Phong Le. Over the same period, average institutional allocation rose roughly 105% to about $3.5 million per position.
Why It Matters
The contrast between Schiff's warning and Saylor's ETF milestone captures the broader debate around Strategy's Bitcoin-centered strategy: skeptics see mounting risk in a capital structure tied so closely to BTC's price, while institutions appear increasingly willing to allocate to Strategy's preferred products regardless. With Bitcoin's near-term price action still uncertain, both sides of this story are likely to keep playing out in the months ahead.
This article is for informational purposes only and does not constitute financial advice. Do your own research.
