Jeff Dorman of Arca Pushes Back on Claims That MicroStrategy Could Be Compelled to Sell Its Bitcoin Holdings

Arca’s chief investment officer Jeff Dorman pushed back on Sunday against renewed claims that Strategy could be forced into selling bitcoin, arguing that commentators are overstating the firm’s vulnerabilities and ignoring the underlying strength of its financial position.

Scrutiny over Strategy’s leveraged bitcoin strategy intensified again over the weekend after longtime Bitcoin critic Peter Schiff reignited concerns on X. Schiff — who chairs Schiff Gold and serves as chief global strategist at Euro Pacific Asset Management — argued that Strategy’s reliance on income-seeking buyers of its “high-yield” preferred shares leaves it exposed if demand falters. He claimed the promised yields “will never actually be paid,” warned of a potential “death spiral,” and even predicted that the company “will eventually go bankrupt.” Schiff went on to challenge Michael Saylor to debate him at Binance Blockchain Week in Dubai in early December, attempting to draw Saylor into a public clash over the firm’s bitcoin-heavy approach.

Dorman took the opposite stance. Without naming Schiff directly, he dismissed what he described as “stupid, inaccurate takes” circulating online, saying that speculation about forced bitcoin sales fundamentally misrepresents Strategy’s balance sheet and capital structure. According to Dorman, Saylor’s 42% ownership stake makes an activist push to liquidate assets “almost impossible.” He also stressed that none of the company’s existing debts include covenants that would force it to sell bitcoin, even during periods of market stress.

He added that Strategy’s legacy software business continues to produce positive cash flow, giving the company support for its interest obligations, which he described as manageable. Companies rarely default simply because debt maturities are approaching, Dorman said, noting that lenders frequently extend loan terms in the well-known “extend and pretend” dynamic.

Despite increasing its bitcoin holdings, Strategy’s stock has underperformed. Class A shares ended Friday at $199.74, down 4.22% on the day and 33.42% lower year to date. By comparison, bitcoin has risen about 0.4% during the same period. Data from StrategyTracker shows the company’s diluted market net asset value multiple near 1.06x, meaning the stock trades only slightly above a conservative, fully diluted estimate of its bitcoin-backed value.

Dorman also rejected the idea that Strategy poses any systemic risk to bitcoin, noting that the firm is no longer a major incremental buyer relative to ETF inflows. “If you follow anyone saying MSTR is a risk to BTC, tell them to call me,” he wrote.

Bitcoin was recently trading around $94,293 at 11 p.m. UTC, down 1.2% over the past 24 hours

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