Bitcoin May Mirror Tech Stocks in a Downturn, Peter Schiff Says

Strategy added 334 BTC to its holdings for about $28.7 million while also repurchasing roughly $176.3 million in STRC, according to its latest disclosure. The purchases came as economist and Bitcoin critic Peter Schiff warned that Bitcoin could reverse if technology stocks begin to decline.

The contrasting developments highlight a key issue for Strategy: while the company continues to accumulate Bitcoin, its ability to make significantly larger purchases could depend on whether investors remain willing to provide capital as risk sentiment changes.

Strategy’s Bitcoin holdings now total 848,000 BTC, equal to slightly more than 4% of the cryptocurrency’s overall supply. Bitcoin was trading around $86,000, up more than 4% over seven days and over 8% across the past month. Even with those gains, the asset was still about 30% below its price a year earlier.

The company disclosed $4.88 billion in USD Reserve, which is designated for preferred-stock dividends and interest payments on debt. It also held $833.4 million in USD Cash for broader corporate needs, including Bitcoin purchases. The two pools serve different purposes, however. The reserve is allocated to specific financial commitments, while the cash balance is more readily available for discretionary use.

Strategy said it received $15.7 million in net proceeds from MSTR common-stock sales and directed the entire amount toward Bitcoin. It supplemented those proceeds with $13 million from its USD Cash balance. The company purchased the 334 BTC at an average price of $85,838.80.

That acquisition was much smaller than Strategy’s previous purchase in late September, when it added 1,665 BTC for approximately $142.8 million. The latest transaction therefore shows that accumulation remains ongoing, but at a considerably reduced size.

Schiff’s criticism is aimed primarily at STRC’s fundraising capacity. He is questioning whether the preferred security can continue supplying fresh capital rather than suggesting Strategy has run out of funds for Bitcoin purchases.

STRC had recovered to roughly $99.40 after sliding to about $75 during the summer. Its reported notional value was $8.93 billion, while the security carried a 12% variable dividend and a 12.07% effective yield.

Schiff said STRC’s rebound was partly supported by Strategy’s buybacks and Bitcoin’s climb above $80,000. He nevertheless argued that the recovery has not returned Strategy to a position where it can easily raise additional funds through new STRC issuance.

During the latest reporting period, Strategy bought back approximately $176.3 million of STRC. Most of the repurchases were financed through USD Cash, with the remaining amount coming from interest earned on cash and short-term investments.

Why the $80,000 Bitcoin Level Matters

Schiff associated Bitcoin’s return above $80,000 with stronger investor confidence and possible short covering. While he considers the level important to the recent rebound, the available data does not independently confirm $80,000 as a technical support zone.

Bitcoin subsequently traded around $86,000, extending its gains beyond the $80,000 mark. The cryptocurrency was up more than 4% over the week and more than 8% over the month, although it remained roughly 30% below its year-earlier price.

Schiff also pointed to falling bond prices, softer inflation and employment indicators, and oil near $91 per barrel after the G7 pledged to release 100 million barrels from strategic reserves. Those developments underpin his broader concerns about financial markets, but they do not show that technology stocks are already entering a correction or prove that Bitcoin would necessarily follow them lower.