Financial commentator Peter Schiff blamed MicroStrategy’s purchasing model for Bitcoin’s recent price drop. Bitcoin fell to $60,000 amid a $1.7 billion liquidation event and an ongoing capital rotation out of digital assets toward artificial intelligence equities.
Schiff claims the corporate accumulation strategy, heavily funded by preferred stock offerings, is buckling the broader cryptocurrency market. Bitcoin currently sits roughly $20,000 below its mid-May peak of $70,000.
The market pressure follows an unusual corporate transaction. MicroStrategy executed a sale of 32 BTC in late May. This marked the software company’s first disclosed disposal of the digital asset since December 2022.
Schiff criticized the underlying financial mechanics driving MicroStrategy’s holdings. He specifically targeted the company’s STRC preferred stock issuance.
What the STRC Preferred Stock Structure Requires for Sustainability
The STRC preferred stock carries an 11.5 percent yield. This funding channel relies on Bitcoin appreciating by an estimated 30 percent annually to remain mathematically viable.
Schiff warns that failing to hit this growth target could trigger a collapse in the stock price and subsequent investor losses.
The broader cryptocurrency market is experiencing its most severe downturn since 2024. Institutional investors are currently moving capital away from digital assets following the failure of geopolitical de-escalation hopes that previously pushed Bitcoin above the $70,000 threshold.