Economist Says Strategy’s Dollar Reserve Marks the Start of the Stock’s Downfall
The latest decision from Strategy has sent shockwaves across markets — and given outspoken Bitcoin critic Peter Schiff exactly the opening he has been waiting for.
- Strategy’s new dollar reserve has triggered fierce criticism from Peter Schiff.
- MSTR stock has dropped sharply and is approaching sensitive valuation levels.
- Analysts warn that forced BTC selling could create a damaging feedback loop for both Bitcoin and MSTR.
Instead of triggering optimism, the company’s move to build a cash reserve for dividend payouts has become the centerpiece of Schiff’s newest attack on the MSTR narrative.
For years, Strategy has been seen as the closest thing to a publicly traded proxy for Bitcoin. Every major rally in BTC pushed MSTR higher, and every correction punished it even harder.
When the company revealed that it had raised capital through a large share sale to establish a pool of U.S. dollars rather than rely solely on Bitcoin for shareholder obligations, optimism briefly emerged — investors felt reassured that a BTC sell-off wouldn’t be required. Schiff saw the opposite.
In a series of posts on X, he argued that shifting to dollars marks a turning point, not a safeguard. According to him, the decision shows the company “knows Bitcoin won’t keep rising” and is preparing for weaker prices. He went even further, calling the business “broken,” the model “fraudulent,” and Michael Saylor “the biggest con man on Wall Street.”
Market reaction has not helped Strategy’s case.
MSTR sank more than 7% today, sliding to roughly $164 — a price not seen since October 2024 and a staggering collapse from the July 2025 high near $455. Since early October, the stock has erased more than half of its value. Year-to-date, the drawdown now exceeds 45%.
The stock’s market net asset value is entering risky territory. If mNAV dips below 1, Strategy has already indicated that selling Bitcoin or BTC derivatives to defend the reserve is on the table. The company insists the new cash cushion should delay that scenario for months, but markets are laser-focused on the possibility that Bitcoin could eventually be sold under distressed conditions.
That feedback loop is what analysts fear most.
CryptoQuant CEO Ki Young Ju warned that selling BTC below 1× mNAV may lift MSTR temporarily, but it would crush Bitcoin’s price, which would immediately circle back and damage Strategy again — a setup he referred to as a potential “death spiral.”
Bitcoin’s strongest critic and Bitcoin’s biggest corporate holder now find themselves locked in the spotlight once again. Whether Strategy just strengthened its treasury management — or took the first step into the crisis Schiff has been predicting for years — will depend entirely on what happens next.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
