Peter Schiff says Michael Saylor is running out of cash

Peter Schiff, chief economist and global strategist at Europac, has raised the alarm over Strategy Inc.’s (NASDAQ: MSTR) plan to use some of its cash reserves to retire part of its debt.

On May 26, Schiff raised his concerns after Strategy used $1.38 billion in cash reserves to repurchase $1.5 billion worth of convertible notes due in 2029. With Strategy now holding a cash reserve of approximately $871 million, Schiff questioned whether it has enough capital to sustain its aggressive Bitcoin ($BTC) accumulation plan.

“You’re running out of cash. What will you sell next to keep the wheels from falling off?” Schiff replied to Michael Saylor’s X post.

Previously, Schiff had argued that Saylor has been running a ponzi scheme to accumulate more $BTC. As such, Schiff predicted that Saylor could ultimately suspend dividends and let STRC preferred stock crash rather than sell Bitcoin to honor obligations to investors.

The economist made these claims after Saylor admitted during Strategy’s Q1 2026 earnings call that the company could sell Bitcoin if needed to fund STRC dividend payments.

What’s Saylor’s defense against Schiff’s claims?

However, Strategy’s latest capital update appears to contradict Schiff’s concerns. The company retired $1.5 billion in debt for just $1.38 billion, saving roughly $120 million. As a result, its total convertible debt fell from $8.2 billion to $6.7 billion.

The company then raised $2 billion through fresh STRC sales and used the proceeds to purchase an additional 24,869 Bitcoin. Year-to-date, the company has generated a $BTC dollar gain of $6.8 billion and a $BTC Yield of 13.3%.

“These transactions demonstrate the optionality we have built into Strategy’s capital structure and our dynamic, multi-variate capital allocation model. We remain focused on increasing Bitcoin Per Share for our common shareholders over the long term while maintaining a fortress balance sheet for our Digital Credit investors,” Saylor stated.

Consequently, Saylor’s capital machine appears to be running strong, accumulating more $BTC. As of press time, the company held 843,738 $BTC, valued at approximately $65 billion.