As Strategy bought an additional 1,550 bitcoin (BTC), Peter Schiff criticised the move.

The purchase was worth about $101 million and lifted Strategy's total bitcoin holdings to 845,256 BTC, blockchain media outlet The Crypto Basic reported on June 8 (local time).

Strategy put the value of its total bitcoin holdings at about $53.92 billion. It also said it expanded its dollar reserves by about $100 million. Markets are focusing less on the size of the purchase and more on how it was financed and what it means for existing shareholder value.

Peter Schiff, a prominent gold advocate and bitcoin critic, argued that Strategy's recent fundraising methods are no longer favourable to existing common shareholders. In a post on X, formerly Twitter, Schiff said Strategy previously raised funds for bitcoin purchases by selling common stock at a price above net asset value and issuing preferred shares with a relatively low dividend burden. He said bitcoin holdings grew faster than dilution from new share issuance, increasing bitcoin exposure per share.

Schiff said the situation has now changed. He argued that Strategy is effectively pushing a "negative bitcoin yield" onto existing shareholders. As dilution from newly issued shares outpaces the increase in bitcoin per share, the amount of bitcoin backing one common share is shrinking over time, he said.

Schiff also criticised the company for placing more weight on additional bitcoin purchases and supporting bitcoin demand in the market than on boosting value for existing shareholders. He claimed Michael Saylor (마이클 세일러), chairman of Strategy's board, intentionally excluded details in the purchase announcement that could indicate whether existing shareholders were being diluted.

In the latest filing, unlike in past announcements, Strategy did not disclose its "bitcoin yield" metric. Citing this, Schiff assessed that Strategy's bitcoin buying game is effectively over. The company and Saylor have not issued a separate response to Schiff's claims.

The purchase drew more attention as it coincided with the company's previous move. Strategy sold 32 BTC last week, its first sale since 2022. At the time, the crypto market raised concerns that Strategy's accumulation stance might be shifting, but the company quickly moved to a large additional purchase and maintained its existing strategy.

Markets are now watching whether Strategy will continue buying bitcoin in a similar way and whether it will again disclose metrics related to the per-share value of bitcoin in future filings. The announcement has reignited debate not over the increase in holdings itself, but over how that increase accrues to existing shareholders.

$MSTR’s original model generated positive Bitcoin yield by selling common stock at a premium, then by issuing preferred stock at coupons below Bitcoin’s expected appreciation. Now @Saylor is forcing common shareholders to accept a negative Bitcoin yield just to prop up Bitcoin.