Money
Schiff Predicts MicroStrategy Death Spiral Will Force Bitcoin Liquidation
The Peter Schiff Show
The Death Spiral Has Begun... Bitcoin, Tech, and Stretch All Cracking!
What was said
"It is a self-perpetuating death spiral. I don't care what you think about Bitcoin. You could disagree with me. You think maybe in the long run it's going to be a new digital gold. It's going to have some kind of value of who knows what. But before Bitcoin can get to the promised land, it's got to get through the liquidation of Strategy. This whole company has to go bankrupt. This whole thing has to be unwound."
Schiff outlined a mechanism by which MicroStrategy's preferred stock structure (STRZ) could force a cascading liquidation of Bitcoin holdings. As STRZ falls below par value, the company must raise dividends to maintain the $100 price, increasing cash burn and forcing Bitcoin sales, which further depresses prices in a self-reinforcing loop. Schiff argues bankruptcy is inevitable and will force liquidation of 840,000+ Bitcoin.
Verification status
Attributed speaker claim
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Source and context
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- Programme
- The Peter Schiff Show
- Episode
- The Death Spiral Has Begun... Bitcoin, Tech, and Stretch All Cracking!
- Clip time
- 26:57
- Original source
- Watch the source segment →
From this episode
The Peter Schiff Show