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Peter Schiff on Wednesday said Strategy Inc. has entered a death spiral, arguing the company ran out of investors willing to overpay for its stock.
Why The Model Broke The Moment mNAV Dropped Below One?
In an interview on July 1, Schiff stated that Strategy’s model worked only while its stock traded at a premium to the Bitcoin it held.
This allowed Michael Saylor to sell overpriced shares and buy more Bitcoin with the proceeds.
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With the stock now worth less than its underlying Bitcoin holdings, that trade no longer works.
“He’s run out of idiots willing to overpay for his stock,” Schiff said. Saylor has resorted to promising high yields on preferred stock to raise money, but those yields are becoming unsustainable.
STRC currently yields 15% in the market despite a 12% dividend, meaning investors are pricing in the risk that Saylor can’t pay it from a company with no operating income beyond its Bitcoin pile.
The Death Spiral Mechanics, As Schiff Sees Them
Bitcoin falls, so Strategy needs to sell more Bitcoin to maintain its cash reserve. That selling pushes Bitcoin lower.
Lower Bitcoin means STRC’s implied yield rises as its price falls. Higher implied yield means Strategy needs to sell even more Bitcoin to service that debt.
“The lower Bitcoin goes, the more Bitcoin he has to sell to raise the money he needs. And then that pushes the price down even lower,” Schiff said.
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He argued Strategy’s $17 billion in Bitcoin purchases since October 2025 couldn’t prevent a 53% price decline, and asked what happens now that the company flips to net seller.
Schiff Has A More Blunt Take On The Broader Bitcoin Thesis
Schiff called the entire Bitcoin-as-digital-gold narrative the primary reason gold underperformed its own fundamentals, arguing investors who might have bought gold instead chose Bitcoin as an inflation hedge.
He said a Bitcoin collapse would ultimately benefit gold by clearing that misconception from the market.
Schiff also dismissed the national strategic reserve argument, saying China and Russia have no interest in Bitcoin and are “laughing their heads off” at the suggestion of a global arms race to accumulate it.
He called Donald Trump’s pro-Bitcoin positioning a pump-and-dump that benefited early sellers, noting Bitcoin now trades below where it was when Trump won the election despite all the political tailwinds.
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Schiff Sees Gold Basing At $4,000 With $6,000 As The Next Target
Schiff said the correction following the Iran war selloff looks like a buy-the-rumor sell-the-fact setup, with $4,000 establishing itself as a new base.
He expects gold to make another run at $5,000 and reach $6,000 by next year, driven by real rates staying negative even if the Fed nudges nominal rates higher.
He also said Fed Chair Kevin Warsh is unlikely to follow through on hawkish rhetoric, arguing central banks always choose inflation over crashing asset prices, rising unemployment, and forced government spending cuts.
“They have no stick,” Schiff said. “So they have to speak loudly.”
Image: Shutterstock
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Building Wealth Across More Than Just the Market
Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.
Arrived
Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.
FarmTogether
Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.
Fundrise
Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.
Realberry
Institutional-quality real estate has traditionally been difficult for individual investors to access. Realberry gives accredited investors direct access to private real estate opportunities backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests.
Immersed
Immersed is building technology for the future of work through spatial computing. Known for its AR/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing.
BluSky AI
The rapid adoption of artificial intelligence is creating significant demand for data centers, power, and compute infrastructure. BluSky AI is building modular AI data centers designed to support next-generation AI workloads while aiming to reduce deployment timelines compared to traditional facilities. For investors looking beyond AI software and applications, the company offers exposure to the infrastructure layer that makes artificial intelligence possible.
ARK7
Residential real estate has historically provided investors with income potential and long-term appreciation, but direct ownership can be expensive and time-consuming. ARK7 enables investors to buy fractional shares of rental properties, offering access to potential rental income and real estate exposure without property management responsibilities. By lowering the barrier to entry, the platform gives investors another way to diversify beyond traditional stocks and bonds.
Miso Robotics
Robotics and automation are becoming increasingly important tools for businesses facing labor shortages and rising operating costs. Miso Robotics develops AI-powered kitchen technology that is already being deployed in restaurant environments, with products designed to help operators improve efficiency and streamline operations. As artificial intelligence expands beyond software and into real-world applications, the company is positioning itself at the intersection of robotics, automation and the future of food service.
Vinovest
Fine wine and rare whiskey have historically moved independently of the stock market, making them a compelling alternative asset. Vinovest manages authenticated, insured portfolios of investment-grade wine and whiskey starting at $5,000 — sourcing, storage, and insurance all handled for you.
EquityMultiple
For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.
Mode Mobile
Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte’s fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.
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