SETH

Peter Schiff on Monday said Strategy (NASDAQ:MSTR) has burned through 92% of its flexible cash reserves since Aug. 30, leaving just $133 million to support STRC’s share price.

Why Schiff Questions Strategy’s STRC Buybacks

Schiff pointed out that Strategy has spent roughly $2.25 billion buying back STRC this year. 

At its recent pace of cash burn, he claimed, the remaining reserves could run dry within days, raising the question: what happens to STRC’s price once Strategy can’t afford to support it anymore?

One commentator disagreed, saying Schiff mixed up two different pots of money:

• USD Reserve (~$4.8 billion): covers preferred dividends and interest, with roughly 38 months of runway
• Flexible cash (~$133 million): funds voluntary buybacks only, not the dividend payments that actually back STRC

Schiff replied that he’s aware the dividend cash is kept separate, but his concern is narrower than that: once the buyback money runs out, STRC’s price could drop, pushing Strategy to raise its dividend again and burn through reserves even faster.

Why Strategy Says Bitcoin Still Covers Its Costs

Strategy followed up Tuesday, saying Bitcoin has outpaced the company’s current 2.3% annual breakeven rate in every rolling four-year period since 2014. 

Over the four years ending Nov. 2, Bitcoin gained 39.7% annually on a compounded basis, meaning $100 invested in Bitcoin would have grown to roughly $381, compared to about $110 at Strategy’s breakeven rate.

Strategy also noted Bitcoin (CRYPTO: BTC) cleared its higher 10.5% hurdle rate in the most recent four-year window, though it fell short of that threshold in some earlier periods. 

The company said a 2.3% rise in Bitcoin’s price covers a full year of interest and dividend payments, letting it sell gains while still holding the same dollar value in Bitcoin.

Why Strategy’s Bitcoin Stack Remains Deeply Profitable

Arkham reported that Strategy’s roughly $65 billion Bitcoin position, bought at an average price of $75,451, currently sits at $919.84 million in the green. 

The company added 811 BTC for $65.5 million last week, funded through MSTR share sales, and repurchased $208.2 million of STRC in the same stretch. 

Strategy still holds $4.92 billion in USD reserves, Arkham noted.

Where MSTR Stands Technically

MSTR rose about 4.5% Tuesday, edging above its 100-day EMA at $136.53 after briefly touching $138.41, just short of the 50% retracement level at $138.96. 

Daily RSI rebounded to 45 but remains below 50, suggesting momentum hasn’t fully turned bullish. 

A break below $136.50 would put support near Tuesday’s $131 low, followed by $125.50, while the 50-day EMA at $139.80 adds resistance above current levels.

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