Peter Schiff on Wednesday said Strategy Inc. (NASDAQ:MSTR) 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 (CRYPTO: BTC) it held.
This allowed Michael Saylor to sell overpriced shares and buy more Bitcoin with the proceeds.
With the stock now worth less than its underlying Bitcoin holdings, that trade no longer works.
