Strategy Buys 1,229 BTC At $88,000, But Peter Schiff Isn't Impressed

Strategy Inc. (NASDAQ:MSTR) has acquired another 1,229 BTC for $108.8 million at an average price of $88,568 per Bitcoin (CRYPTO: BTC) as Peter Schiff slammed the company’s five-year buying spree as a 3% annual return disaster.

Strategy Resumes Buying After $2.2 Billion Cash Raise

The largest publicly traded Bitcoin holder purchased the coins last week through the sale of $108.8 million in Class A common stock, according to an SEC filing on Monday

Total holdings increased to 672,497 BTC, acquired for $50.44 billion, representing an average purchase price of $74,997 per Bitcoin.

The company achieved a BTC Yield of 23.2% year-to-date in 2025.

Schiff Destroys The Math On Returns

“Strategy has been buying Bitcoin for five years. With an average cost of 75K, the company has a ‘paper profit’ of just 16%. That’s an average annual return of just over 3%,” Schiff posted on X.

MSTR would have been much better off had Saylor bought just about any other asset instead of Bitcoin, he added.

Schiff also went after Strategy’s preferred stock playbook last month, calling it a trap for investors.

“Dividends are only paid if MSTR decides to declare a dividend,” Schiff warned. “Undeclared dividends don’t accumulate. They are lost forever.”

He predicted fund managers will eventually “dump the preferreds” once they realize dividends will never actually be paid, collapsing Strategy’s entire capital-raising machine.

The Valuation Disconnect Is Brutal

Strategy’s market value sits at approximately $45 billion, but its BTC holdings are worth around $59-60 billion—a massive discount reflecting investor concerns about leverage, dilution, and Bitcoin’s 30% drop since Oct. 10.

MSTR stock has fallen 50% since Oct. 10, significantly underperforming Bitcoin itself. 

Chart Shows MSTR In Absolute Freefall

MSTR Price Action By TradingView

The devastation is visible on the chart—a collapse from nearly $500 in July to current levels represents a loss of over 68%.

The Supertrend indicator flipped bearish at $187.86 and has been acting as heavy resistance, while the SAR indicator at $179.77 confirms the downtrend is firmly in place.

MSTR has been making lower lows consistently with barely any meaningful bounces, showing complete lack of buyer interest. 

All EMA's are pointing downward with price well beneath them.

There’s currently no clear support level holding except recent low of $153.70.

The stock desperately needs to reclaim $180-$190 to even hint at stabilization, but until Bitcoin itself finds a floor, MSTR will likely continue bleeding as institutional and retail investors head for the exits.

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