MSTR Plunges 8% As Peter Schiff Says Saylor’s STRC Bitcoin Engine Is In A ‘Death Spiral’
Strategy Inc.’s (NASDAQ:MSTR) preferred stock (NASDAQ:STRC) dropped below $98 on Tuesday as Peter Schiff declared the death spiral he predicted has officially begun.
Cash Reserve Drained From 21 Months To 6.1 Months
Strategy’s USD reserve, designed to cover preferred stock dividends, stood at $871 million as of May 31, covering just 6.1 months of payments.
Saylor himself said he wants that number above 18 months.
Annual dividend obligations across Strategy’s four preferred stock series now exceed $1.7 billion, meaning the reserve eroded from over two years of coverage at the start of 2026 to barely half a year today.
The drain happened quickly. Strategy pulled $1.38 billion from the reserve to repurchase $1.5 billion of convertible debt at an 8% discount.
While the debt buyback made financial sense, it …
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