Peter Schiff: Short sellers could force Strategy to sell BTC to repurchase shares—or trigger a “death spiral”

TechFlow News, June 24: Economist and crypto critic Peter Schiff stated that market optimism toward Bitcoin is “excessively complacent.” Besides purchasing Bitcoin, Strategy’s other end is also tied to Wall Street—but it is currently under significant pressure: its stock price has fallen roughly 80% from its peak, and dropped another ~20% within just five days; its flagship preferred stock STRC also declined approximately 13%. If short-selling pressure continues driving down Strategy’s stock price, it could trigger an extreme scenario wherein Strategy is forced to sell Bitcoin to repurchase its own shares. Yet this move may not lift the stock price—and instead could trigger further Bitcoin price declines, creating a negative-feedback “death spiral.” This very scenario represents the structural trap inherent in Strategy’s corporate strategy—“the predicament that has ensnared Michael Saylor.”