Peter Schiff has a message for Bitcoin bulls. Buy BTC itself, he says, not Michael Saylor’s Strategy stock. The company sold $544.5 million of MSTR shares last week. It bought no Bitcoin.

Schiff points to one number. MicroStrategy’s Bitcoin Yield has fallen to 4.5% this year, he says. It stood at 13.3% in late May.

Why MicroStrategy’s Bitcoin Yield Keeps Falling

Bitcoin Yield sounds complicated. It is not. It tracks how much Bitcoin sits behind each MSTR share.

Sell new shares without buying coins, and the number drops. That is exactly what happened last week.

Strategy sold 5,429,160 MSTR shares. It raised $544.5 million. It bought zero bitcoin, its 8-K filing shows.

Holdings sit at 843,775 BTC. The yield was 9.4% on May 3. It climbed to 13.3% by May 25. Schiff now puts it at 4.5%.

“Why is $MSTR up 7% this morning? Saylor’s latest move reduced the YTD Bitcoin yield to 4.5%. That yield stood at 13.3% on May 25. That’s a 66% reduction in two months! At this rate the 2026 Bitcoin yield will be negative. If you’re bullish, you’re better off just owning Bitcoin,” Schiff urged.

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Here is the part few people noticed. Strategy warned about this outcome itself, in its own first quarter filing.

“…if the Company increases Assumed Diluted Shares Outstanding at a faster rate than its bitcoin holdings, then the Company would experience decreased BPS and negative BTC Yield…” Strategy, Q1 2026 results.

Put simply, more shares without more Bitcoin turns the yield negative. BeInCrypto covered the trade-off facing MSTR investors earlier on Monday.

The $25 Million Buyback Barely Moves the Needle

Strategy also bought back some of its own preferred shares, known as STRC. STRC is a special class of share. It pays holders a fixed 12% cash dividend every year. It is designed to trade at $100. Strategy paid an average of $86.52 instead. It spent $25 million and retired 288,930 shares.

That saves roughly $3.5 million a year in dividends.

Now compare that to the whole bill. Strategy owes about $1.76 billion a year in dividends and loan interest, it disclosed on June 29. The buyback trims less than 0.2%.

Another $975 million is available. Strategy will not sell new STRC below $100. It also cannot use its cash reserve to fund buybacks. It may sell bitcoin instead.

What to Watch on Thursday

The cash pile is growing fast. It rose from $2.55 billion on June 28 to $3.75 billion on July 26. That covers roughly 25 months of dividends, up from 17.4 months.

The Bitcoin tells a harder story. Strategy paid an average of $75,476 per coin. Bitcoin’s current price is near $64,762. The gap is about $8.9 billion.

Losses are already on the books. First quarter net loss reached $12.54 billion, or $38.25 per share. Second quarter results arrive after the close on Thursday, July 30. That report should carry the official Bitcoin Yield. It will prove Schiff right or wrong.

Not everyone agrees with him, however. Investor Andrew Webley says the preferred shares now cover 2.1 years of payments with no new fundraising. He calls it the biggest step forward in Bitcoin corporate finance so far.

Others question the price. A former Goldman Sachs credit specialist argues STRC may be mispriced by 13%. A June survey found most holders bought STRC below par.

Schiff is still a gold man and a long-time Bitcoin critic. This is a swipe at Saylor, not a change of heart. The real test comes Thursday. Can Strategy lift STRC back to $100 while common shareholders pay for it?

Source: BeInCrypto