Peter Schiff: MicroStrategy Can't Raise More Cash to Buy Bitcoin

Peter Schiff has pointed out that MicroStrategy's Stretch (STRC) preferred stock has recovered toward its $100 par value. Still, he contends the company no longer has access to the fundraising method that previously supported its Bitcoin purchases.

Despite this, Strategy has continued accumulating Bitcoin, financing its most recent acquisition through sales of common stock.

Schiff Attributes STRC's Recovery to Buybacks and a Bitcoin Price Increase

Schiff, a well-known critic of Bitcoin, discussed the situation during his October 2 podcast. He noted that STRC is trading close to $99.4, a recovery that he acknowledged caught him off guard.

He attributed the improvement to Strategy's weekly repurchases of STRC and Bitcoin's price rise. Schiff suggested that this rally may have either restored some investor confidence in the stock or led to short covering.

The preferred stock had fallen to around $75 earlier this year, a decline CEO Phong Le attributed to unexpected leverage.

Speaking about Executive Chairman Michael Saylor, Schiff argued that the rebound has not reopened Strategy's main funding source.

“There’s no way that he’s going to be able to start selling more Stretch; that means he’s not going to be able to raise money to really start buying more Bitcoin,” Schiff said.

He added that Strategy has sufficient cash to continue paying STRC dividends for a bit longer before those funds run dry. However, he stated that the company no longer has the mechanism to purchase additional Bitcoin.

Saylor, for his part, highlighted the stock's reduced volatility. He stated that STRC's 30-day historical volatility was 9% as of October 2, placing it below the 10% figure for the SPDR S&P 500 ETF (SPY).

A milestone for Digital Credit: $STRC’s 30-day historical volatility is now 9%, below $SPY. We’re harnessing the power of Bitcoin while reducing price volatility for income investors. This is what financial engineering should do.

— Michael Saylor (@saylor) October 3, 2026

Common Stock Has Funded Most of Strategy’s Bitcoin Buys Since May

Strategy's weekly filings partly back up Schiff's argument. The company last sold STRC through its at-the-market program during the period from May 11 to 17, generating roughly $1.95 billion.

Its remaining STRC capacity has stayed at approximately $17.51 billion in every subsequent filing, indicating that no additional shares were sold.

Strategy then halted Bitcoin purchases for 10 weeks over the summer, instead selling coins to cover dividends and STRC buybacks. When it resumed buying in late August, it turned to other funding sources.

It sold class A common stock (MSTR) to finance 4,603 BTC that week and 1,665 BTC in late September. In between, it used $75.7 million from its USD Cash account to acquire 950 BTC.

Proceeds from common stock sales are also redirected into STRC. Between September 21 and 27, Strategy used $103.5 million from MSTR sales to repurchase STRC shares.

Strategy also held a $5.02 billion USD Reserve as of September 27. The company describes this pool as intended to support preferred dividends and debt interest.

Schiff expects Bitcoin to decline once technology stocks retreat. Strategy typically reports its purchases on Mondays, so its next filing will indicate whether common stock sales continue to fund its acquisitions.