Peter Schiff says Saylor has given up on digital credit. Strategy is selling Bitcoin to buy dollars.

The company sold the world on Bitcoin-backed credit. Schiff says its own actions prove the idea failed.

Michael Saylor’s newest invention is something he calls digital credit. The flagship is a preferred stock with the ticker STRC, nicknamed Stretch: it is built to hold a $100 price and pay its holders a cash dividend that adjusts to keep it there, all issued by a company whose treasury is Bitcoin. The pitch is that Bitcoin is better money, so credit should be built on it. A year in, Strategy is selling that Bitcoin. In the week before Schiff’s post it sold 1,690 Bitcoin and used the money to buy back Stretch shares, by its own disclosures. "It seems @Saylor has given up on the idea of digital credit," Schiff wrote on August 10.

Selling Bitcoin to buy dollars breaks the whole pitch

This is the point Schiff wants people to get. If Bitcoin really worked as collateral, Strategy would be the last company on earth to sell any. It would borrow against what it holds and keep every bit of it. Instead, the dollars owed to Stretch holders are coming from Bitcoin sales. Lenders, Schiff says, don’t trust Bitcoin as security for their loans. They want the old-fashioned money Saylor has spent years laughing at. In his reading, the company’s own behavior is the verdict. "Sell MSTR and sell Bitcoin now!" he wrote.

His second warning on the stock in three days

Schiff went after Strategy on August 8 too, warning that common shareholders would be the ones who pay for it. We covered that call. The new post adds the reason: the company’s own selling, in his view, shows the idea behind it is done.

On the record

So it’s on the record. Peter Schiff, bearish on Strategy and bearish on Bitcoin, August 10, 2026. The post is short and worth reading in full in his own words.

Peter Schiff’s full record · Every Strategy prediction we track · Every Bitcoin prediction we track

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