MicroStrategy stock crashes as Schiff claims business model is broken | Credit: Derek Fenech
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Key Takeaways
MSTR drops 35%, triggering renewed criticism from Peter Schiff.
Concerns are rising over the funding, Bitcoin reserves, and NAV risks.
Losing support threatens $154; rebound could target $225 to $269.
Strategy’s stock, trading under MSTR, has taken a beating, dropping more than 35% over the past month.
The slide, which pushed MSTR shares to their lowest level since October 2024, comes as Bitcoin continues its months-long decline.
And with that drop, Peter Schiff has jumped back into the conversation, using the downturn to renew his long-running criticism of the company and its chairman, Michael Saylor.
So what does this rough stretch actually mean for Strategy, and for the future of MSTR?
Additionally, Saylor disclosed that the company has formed a $1.44 billion reserve.
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This development raised eyebrows, with some saying it is raising money from new investors to pay existing ones. It has also drawn Schiff to criticize the firm.
According to Schiff, Strategy depends on the continual sale of preferred shares to fund dividends and Bitcoin purchases, with little to no revenue, making it a red flag.
“Today is the beginning of the end of MSTR. Saylor was forced to sell stock not to buy Bitcoin, but to buy U.S. dollars merely to fund MSTR’s interest and dividend obligations. The stock is broken. The business model is a fraud, and Saylor is the biggest con man on Wall Street,” Schiff wrote on X.
NAV, Bitcoin Drop Sparks Warnings
One reason for this is that Bitcoin’s price is approaching a level where it would fall below the firm’s on-chain cost basis, which is approximately $74,436.
For some, this could force it to sell even though Saylor argues for the “Never sell your Bitcoin” model.
Meanwhile, Schiff is not the only one who has criticized Saylor and Strategy. Others have done the same.
One of them is Dom Kwok, who previously worked at Goldman Sachs.
According to Kwok, Strategy might be forced to sell its BTC once its Net Asset Value (NAV) falls below 1.
He stated this after referring to a video from CEO Phong Le, who hinted at the potential sale.
“MSTR will be forced to sell its $BTC to make interest payments. Treasury companies cannot operate when mNAV < 1. It’s sell bitcoin or bust,” Kwok opined.
However, others have come to the firm’s defense, arguing that the MSTR stock crash may be an opportunity to accumulate more. One of them is Tech entrepreneur Mike Alfred.
“The bottom is in on MSTR. Even if I’m right, will delete so no crying on the feed. Thanks for your understanding,” Alfred, who is also a Bitcoin maximalist, said.
MSTR Price Analysis
Looking at the daily chart, MSTR has fallen below the key support level at $234.65.
This breakdown signals weakening bullish strength. As a result, sellers now have more control over the price action.
At the same time, the 20-period Hull Moving Average (HMA) has also crossed below the price.
This shift reinforces the bearish trend. It shows momentum tilting toward the downside.
Additionally, the Bull Bear Power (BBP) has turned negative. This confirms increasing selling pressure and a loss of buying dominance.
If these conditions continue, MSTR’s price risks dropping toward $154.20, a lower support zone. Continued bearish volume could accelerate that decline.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
