After Strategy unveiled a new program that could allow it to monetise its bitcoin holdings, prominent bitcoin critic Peter Schiff raised the possibility of a “death spiral” that could drive prices down and trigger further selling.

On June 29, blockchain outlet U.Today reported that Strategy announced a “BTC monetisation program” under which it may sell bitcoin holdings if needed to bolster its U.S. dollar reserves, pay dividends and interest, and repurchase its own securities.

The key point of the announcement is that Strategy is no longer a company that only buys bitcoin unilaterally. Strategy, known as the company that holds the most bitcoin among corporations, can use the program to tap part of its holdings as a source of dollar liquidity when needed.

The company said it could raise up to $1.25 billion to build its U.S. dollar reserves. The plan also includes up to $1 billion to repurchase digital credit securities and up to $1 billion to buy back Class A common shares.

Peter Schiff (피터 시프) argued on X, formerly Twitter, that “MSTR is now a Bitcoin seller.” MSTR is Strategy’s Nasdaq-listed ticker.

He pointed out the company may sell bitcoin to bolster its U.S. dollar reserves, pay preferred dividends, pay debt interest, and secure funding to repurchase preferred and common shares.

He also mentioned the potential for market shock. Schiff argued that if Saylor shook the market with an announcement to sell just 32 BTC, this time it is an announcement that permits selling of up to $3.25 billion, which could have a much larger impact. He calculated that, assuming a bitcoin price of $60,000, that would amount to about 54,000 BTC.

The concerns came as the price of Strategy’s financial product STRC has recently fallen below $100. Strategy said it will raise STRC’s regular dividend rate to 12 percent per year from July 1. The market is watching what the monetisation program means as the company’s bitcoin holding strategy and capital-market funding structure face pressure at the same time.

The company moved quickly to calm the situation. Strategy Chief Financial Officer Andrew Kang said Strategy is not in a situation where it must sell bitcoin under duress. The company said it currently holds about $2.55 billion in U.S. dollar reserves and explained that the program does not mean immediate large-scale bitcoin selling.

The market is focusing less on whether sales occur and more on how the potential for selling could affect investor sentiment. If Strategy starts actively using bitcoin not simply as a long-term holding but as a liquidity tool, market perceptions of corporate bitcoin holding strategies could change. On the other hand, if the company uses the program only in a limited way on the back of ample dollar reserves, there is a possibility the market will conclude the concerns were excessive.

Bitcoin prices are currently maintaining an upward trend, but the market is watching whether Strategy’s plan to deploy up to $3.25 billion will lead to actual bitcoin sales and what impact it could have on STRC and shareholder return policies.

$MSTR is now a Bitcoin seller. Under its just-announced “Bitcoin Monetization Program” it may sell Bitcoin for three purposes: to raise up to $1.25B to fund its USD reserve, to pay preferred dividends & debt interest, and to fund $1B of preferred and $1B of common stock buybacks.