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Bitcoin Critic Peter Schiff Tells Bulls to Own BTC Instead of Strategy (MSTR)

Published 30 July 2026
Dr. Guneet Kaur
Authors

Key Takeaways

  • Schiff says Strategy’s latest share sale diluted Bitcoin exposure, with BTC yield per share falling to 4.5%.
  • Supporters argue MSTR still beats Bitcoin over the long term, citing nearly six years of historical data.
  • The debate boils down to dilution vs. long-term outperformance as Bitcoin accumulation slows.

Peter Schiff has aimed his latest broadside not at Bitcoin but at the most popular proxy for owning it. In a July 27 post on X, the economist questioned why Strategy shares rallied about 7% after the company sold another 5.4 million common shares without buying any Bitcoin, arguing the issuance cut the firm’s year-to-date Bitcoin yield to 4.5% from 13.3% on May 25, a roughly 66% decline in two months. 

“If you’re bullish, you’re better off just owning Bitcoin,” Schiff wrote, warning that at the current pace the 2026 yield will turn negative.

Company filings support the numbers behind the jab. Strategy sold 5,429,160 MSTR shares last week, raising $544.5 million while buying zero Bitcoin, according to its 8-K, leaving holdings at 843,775 BTC. 

Growth in the treasury has essentially stalled, with holdings up a net 37 BTC since May 25, and proceeds went elsewhere: $525 million to a dollar reserve now totaling $3.7 billion and $25 million to buying back STRC preferred shares. Earlier this cycle, the company sold 3,588 BTC for about $216 million to fund preferred dividend obligations, its first meaningful Bitcoin sale in years.

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Yield Math Versus Holding Period Math

Bitcoin yield tracks how much BTC sits behind each MSTR share, so issuing stock without buying coins mechanically drives it lower, a consequence that Strategy itself flagged in its quarterly report. 

Schiff’s July critique extends a months-long argument that the common stock has stopped functioning as a leveraged Bitcoin bet, with the economist writing in mid-July that continued discounted share sales dilute Bitcoin per common share indefinitely and that MSTR has become a funding source for creditors and preferred shareholders.

Bulls answered with a longer dataset. Bitcoin researcher Adam Livingston examined every possible entry and exit across 1,496 shared trading days between August 10, 2020, and July 24, 2026, finding that Strategy beat Bitcoin in 68.75% of more than 1.1 million holding periods, with the advantage widening over time. 

Outperformance proved marginal over short windows but substantial over long ones, as the median four-year Strategy investment generated almost 108.6% more terminal wealth than holding Bitcoin directly, with Livingston attributing the edge primarily to duration rather than timing.

What the Dispute Actually Decides

Neither side disputes the recent mechanics; only their meaning is in dispute. Schiff reads the yield collapse, the buying freeze now stretching four weeks, and the cash accumulation as evidence that the flywheel has reversed, while Livingston reads six years of data as evidence that patient holders still come out ahead. 

Worth noting for anyone tempted to trade the disagreement: Schiff remains bearish on Bitcoin itself and says he would buy neither asset, meaning his advice to bulls is hypothetical by his own admission. 

Bitcoin traded near $64,500 as the exchange circulated, leaving both the stock and the coin hostage to Wednesday’s Fed decision before either thesis gets tested.

 

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.
Dr. Guneet Kaur

Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.

Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.

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