Strategy Inc. (NASDAQ:MSTR) is facing renewed criticism after economist Peter Schiff argued the company’s latest Bitcoin (CRYPTO: BTC) purchase destroyed shareholder value.

“Owning MSTR Is The Worst Way“

In an X post on June 9, Schiff sparked a debate over leverage, dilution and the sustainability of Michael Saylor’s Bitcoin accumulation strategy. He claimed Strategy is already sitting on a loss of more than $6 million from its recent purchase of 1,550 Bitcoin.

Over the past five days, MSTR is down over 8%.

According to Schiff, the acquisition not only lost value as Bitcoin declined but also reduced Bitcoin per share, resulting in what he described as a negative Bitcoin yield for shareholders.

“Even if you are bullish on Bitcoin, owning MSTR is the worst way to make that bet,” Schiff said.

The comments come as investors increasingly scrutinize Strategy’s capital structure following its first reported Bitcoin sale since 2022 and the expansion of multiple Bitcoin-linked preferred share offerings.

Crypto Twitter Pushes Back

Not everyone agreed with Schiff’s assessment.

Trader ZeroReserveNews acknowledged that the negative Bitcoin yield calculation was "mechanically correct" for the specific transaction but argued the analysis ignored Strategy’s broader financial position.

According to the trader, the company deliberately built a roughly $1 billion cash reserve to avoid issuing additional shares or selling Bitcoin during periods of market weakness.

The trader argued that the debate should focus on balancing dilution risks against dividend obligations rather than presenting a simple choice between owning Bitcoin and owning MSTR.

Schiff remained unconvinced and responded, "But MSTR will burn through that cash paying dividends of preferred shares. Then what?"

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