I saw that Peter Schiff recently raised an interesting point on social media. He’s saying that Bitcoin has become dependent on what MicroStrategy is doing with its continuous purchases, and honestly, that’s not something to ignore. According to Odaily, MicroStrategy has increased the dividend rate of its perpetual preferred shares, the STRC, up to 11.5%, from 10% only in September. All of this is to maintain the ability to continue financing and buying even more Bitcoin. This is where Peter Schiff sees the problem.

As they keep issuing STRC, MicroStrategy’s cash consumption increases. And what if the reserves run out? We could end up in a situation where Michael Saylor is forced to sell Bitcoin to pay dividends to shareholders. It’s a scenario nobody wants to see. Earlier, Chaitanya Jain, MicroStrategy’s chief strategist, had said that STRC and MicroStrategy together are the perfect machine for accumulating Bitcoin on a large scale. Everything looks great on paper, but Peter Schiff is highlighting the downside.

This massive institutional accumulation could really change the market structure forever, especially if it starts to unravel. Thinking about it carefully, it’s a dynamic that deserves attention. We have a company building its entire financial strategy around Bitcoin—bold, yes, but also risky. If things go wrong, it could trigger knock-on effects that no one expects.