- Economist Peter Schiff is confident that Strategy will have to sell more Bitcoin.
- This will have a negative impact on the price of the main cryptocurrency.
Peter Schiff believes Michael Saylor will need to sell more Bitcoin and Strategy shares if the company aims to return its STRC preferred shares to its $100 target.
STRC currently remains trading below $95, despite Strategy using the proceeds from its asset sales to buy back shares.
In early August, Strategy sold 1637 bitcoins for $102 million and used the proceeds to repurchase approximately 1,15 million STRC shares. The company also sold 6,59 million MSTR shares for $653,1 million, adding approximately $650 million to its dollar reserves, bringing its balance to $4,65 billion.
STRC's latest share buyback is the third in Strategy's $1 billion share repurchase program.
Peter Schiff argues that further Bitcoin and MSTR sales to support preferred stocks will put additional pressure on Bitcoin , causing it to underperform against gold again.
Moreover, the economist sees the recent rise in gold prices as the reason for Bitcoin's weakness: the price of the yellow metal rose above $4300, while Bitcoin fell into the $62,000 range.
Schiff predicts further gold strength, which will put even more pressure on Bitcoin . However, weak US labor market data has increased expectations of Federal Reserve easing, which should result in a positive boost for risk assets, including cryptocurrencies.
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