Foreign media reports that commentator Peter Schiff, who has long seen empty encrypted assets, has recently directed a spear at Strategy’s newly released Bitcoin Liquidation Plan. In his view, this arrangement could allow Strategy, who was supposed to be a long-term buyer, to turn to the seller and to increase market pressure when Bitcoin prices were weak.

Strategy had previously disclosed in a company press release that it planned to sell a part of the bitcoin in specific cases to replenish the United States dollar reserve, to maintain the payment of proceeds, and to buy back part of the securities and common shares. Schiff subsequently wrote on social platform X, which meant that Strategy was no longer just a bitcoin buyer, but was authorized to sell on a larger scale.

The plan involves multiple use of funds

According to the disclosures, the Bitcoin liquidation plan could cover a number of categories, including up to $125.0 billion in reserve replenishment, priority share dividends and interest payments on debt, and securities and stock buy-back arrangements totalling $2 billion.

  • United States dollar reserve replenishment ceiling: $125.0 billion
  • Stock buyback scale: $1 billion
  • Scale of repurchases of general-purpose units: $1.0 billion

Schiff focused on price and emotional shocks

The central judgement of Schiff is that once Bitcoin prices continue to fall, the market begins to account for the impact of Strategy ' s potential for sale in advance. On this basis, he estimates that, if calculated at approximately US$ 60,000 bitcoin, the corresponding volume of sales of the relevant authorized scale could exceed 54,000 bitcoin.

He also mentioned that Strategy had raised market concerns when only 32 bitcoins had been sold. In this logic, if the company now has more room for sale, investors ' concerns about subsequent depression may rise further.

Strategy claims not to be forced to sell

However, Strategy management did not accept this statement. Andrew Kang, the company's chief finance officer, stated that Strategy was not the party forced to sell bitcoin and still holds approximately $25.5 billion in reserves.

At the same time, Strategy also announced an upward adjustment of the regular STRC dividends to 12 per cent per annum as of 1 July. It was reported that the adjustment was in the face of an apparent drop of $100 in the price of the STRC, which led to increased attention to corporate follow-up funding arrangements.

According to external sources, the next focus for the market will be on the ability of Bitcoin price performance to absorb such potential sales pressure expectations, and whether Strategy will actually use a large-scale currency-sale authorization. For the time being, the increase in bitcoin remained constant.