Schiff Predicts ‘Beginning of the End’ for MSTR as Strategy Eases Bitcoin Sell-Off Fears With $1.44B Reserve

Renowned economist and Bitcoin critic Peter Schiff has predicted that MSTR could suffer a massive crash following Strategy’s latest move. The company established a USD reserve for dividend payments, a move that has allayed fears that the company would have to sell its BTC holdings to pay them.

Peter Schiff Predicts MSTR’s Downfall Following Strategy’s Reserve Move

In an X post, Schiff stated that today marks the beginning of the end of MSTR as Strategy, and Michael Saylor sold shares of the class A common stock to buy dollars to fund interest and dividend obligations. The economist further remarked that the stock is “broken” and that the company’s business model is a “fraud,” while also describing Saylor as the “biggest con man on Wall Street.”

As CoinGape reported today, Strategy sold 8.2 million MSTR shares to set up the reserve and also used some of the net proceeds to buy 130 BTC, bringing its total holdings to 650,000 BTC. This move has allayed fears that the company may have to sell its Bitcoin holdings to fund dividend payments, after CEO Phong Le stated that they might have to do so as a last resort.

However, Schiff has heavily criticized this move. In another X post, he stated that the move is an admission that the BTC price will fall and that the company needs dollars to support its interest and dividend obligations. He added that once they exhaust their dollar reserves, they will still have to sell their BTC at much lower prices than exist today.

This amounts to an admission that you realzie that Bitcoin will be falling in price and that you need dollars to support you interest and dividend obligations. Once you exhaust your dollar reserves you will be forced to sell your Bitcoin at much lower prices than exist today.

— Peter Schiff (@PeterSchiff) December 1, 2025

Strategy Stock Falls Over 7%

TradingView data shows that the MSTR stock is down 7% today, trading at around $164. This marks this stock’s lowest level since October 2024. As market commentator The Kobeissi Letter pointed out, the stock is now down 55% since October 6th.

Meanwhile, the Strategy stock is down over 45% year-to-date (YTD) after reaching a 2025 high of around $455 in July. With this crash, the stock’s mNAV is at risk of falling below 1.

This is significant as Strategy stated that it could still sell Bitcoin or BTC derivatives to fund its reserve when the mNAV is below 1. However, a positive is that the company suggested that its current reserve could fund dividend payments for months, meaning that they might not have to sell any BTC anytime soon.

CryptoQuant CEO Ki Young Ju stated that selling Bitcoin below 1x mNAV does not sound like a “good idea.” He added that it might benefit MSTR shareholders in the short term but would ultimately hurt BTC, which in turn would hurt the stock, creating a “death spiral.”

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