Peter Schiff Warns Bitcoin Vulnerable to Tech Stock Pullback

Economist and longtime Bitcoin (CRYPTO: $BTC) critic Peter Schiff warned that bitcoin's recent strength could set up a sharper reversal, arguing Strategy (NASDAQ: $MSTR) has lost its ability to raise fresh capital for further bitcoin purchases through its STRC preferred stock.

Speaking on the Peter Schiff Show, Schiff noted bitcoin had gained almost 1% on the week and was trading around $84,500 at the time of recording. He also pointed to STRC's price, which had recovered to about $99.40 after falling to $75 during the summer. Schiff credited the rebound to Strategy repurchasing STRC shares and bitcoin's move back above $80,000, which he said may have restored confidence and triggered short covering, but he maintained the recovery doesn't fix the underlying financing problem, contending Strategy co-founder Michael Saylor isn't going to be able to raise money to really start buying more bitcoin again.

Strategy's latest disclosed figures show 848,000 BTC, equal to just over 4% of total bitcoin supply, alongside $4.8 billion in USD reserves and $833 million in cash. Its STRC (NASDAQ: $STRC) position carries an $8.93 billion notional value, a 12% variable dividend and a 12.07% effective yield.