Strategy purchased 334 BTC worth roughly $28.7 million and bought back $176 million in STRC in its latest disclosure, even as Peter Schiff cautioned that Bitcoin could face a reversal if technology stocks retreat. The contrasting developments raise a key issue beyond whether Strategy is continuing to accumulate Bitcoin: can its current financing structure support larger purchases if investor risk appetite weakens?
Strategy’s Bitcoin holdings climbed to 848,000 BTC, representing slightly more than 4% of Bitcoin’s total supply. Bitcoin was trading near $86,000, gaining over 4% in the past week and more than 8% over the past month, although it remained about 30% below its price from a year earlier.
The company reported $4.88 billion in USD Reserve earmarked for preferred-stock dividends and debt interest, alongside $833.4 million in USD Cash available for general corporate purposes, including Bitcoin acquisitions. While both balances provide liquidity, they serve different purposes: the reserve is committed to specific obligations, whereas cash represents the more readily available source for discretionary purchases.
Strategy’s latest filing also reported $15.7 million in net proceeds from sales of MSTR common stock, with all proceeds allocated toward Bitcoin, as well as a $13 million withdrawal from USD Cash to fund the purchase. The company acquired the 334 BTC at an average price of $85,838.80 per coin.
By comparison, Strategy purchased 1,665 BTC for approximately $142.8 million in late September. The difference highlights a notable shift in scale: the latest transaction confirms that accumulation continues, but the purchase was considerably smaller.
Schiff’s concerns focus on STRC’s capacity to generate additional funding rather than Strategy’s ability to make another Bitcoin purchase. STRC had recovered to approximately $99.40 after dropping to around $75 during the summer. Its reported notional value stood at $8.93 billion, while its variable dividend was 12%, producing an effective yield of 12.07%.
Schiff attributed part of STRC’s recovery to Strategy’s repurchases and Bitcoin’s rise above $80,000. However, he argued that the rebound has not restored the company’s ability to secure additional capital through new STRC issuance.
During the latest reporting period, Strategy repurchased approximately $176.3 million worth of STRC. Most of the money came from its USD Cash balance, while the remainder was funded through interest earned on cash and short-term investments.
The $80,000 Bitcoin Recovery Level
Schiff connected Bitcoin’s move back above $80,000 with improving market confidence and potential short covering. While the level is important to his explanation of the recovery, the available evidence does not establish $80,000 as a technical support level.
Bitcoin has since moved closer to $86,000, with weekly and monthly gains showing that the recovery extended beyond the $80,000 mark. Still, Bitcoin’s year-over-year decline provides important context, indicating that the recent gains represent a recovery from lower levels rather than a return to prices seen a year ago.
Schiff also based his outlook on declining bond prices, weak inflation and employment data, and oil prices near $91 per barrel following a G7 commitment to release 100 million barrels from strategic reserves. These factors reflect Schiff’s interpretation of broader market risks, but they do not demonstrate that a technology-stock correction is already underway or guarantee that Bitcoin would decline if such a correction occurs.
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