Strategy Inc.
(NASDAQ:MSTR) added 1,550 Bitcoin (CRYPTO: BTC) worth approximately $101 million last week, but critic Peter Schiff is not impressed.
"Damage Control" Schiff argued that the transaction highlighted a growing problem for Strategy's capital allocation model.
In an X post on June 8, Schiff called the purchase "damage control, while also increasing its U.S. dollar reserves by $100 million." He claimed that if Strategy sold common stock below the level required to make Bitcoin purchases accretive, existing shareholders effectively suffered dilution.
To commentators agreeing with Schiff's interpretation, he said the stock sale is "the beginning of the end." Diluting MSTR Shareholders The criticism centers on Strategy's adjusted multiple-to-net-asset-value (mNAV) which measures how much investors are paying relative to the company's Bitcoin holdings.
