Peter Schiff renewed his “death spiral” warning on Strategy (MSTR), even as the stock jumped to $137.40 during a broader Bitcoin (BTC) rally. Michael Saylor answered with an AI-generated video of himself riding a bull in Spain.

Strategy’s stock has surged since early August, echoing a rebound in Bitcoin that lifted the cryptocurrency back above $80,000 this week. Schiff attributes Thursday’s jump largely to short sellers closing positions rather than genuine buying conviction.

Schiff Won’t Budge on His Bear Case

Schiff, a longtime Bitcoin critic, has spent months arguing that Strategy’s preferred stock dividend obligations leave the company exposed if Bitcoin turns lower again. He linked Thursday’s rally to a short squeeze rather than fresh conviction behind the stock.

Not sure what’s behind today’s sharp $MSTR rally, though I suspect short-covering has a lot to do with it. Nonetheless, I stand by my “death spiral” thesis, even if Strategy’s life expectancy has been extended a bit by the temporary Bitcoin rally.

Schiff has called MSTR a scam before, and he previously warned of a death spiral tied to the same preferred stock structure, which pays a variable dividend that Strategy funds partly by issuing new shares.

Saylor Answers With Bravado

Strategy’s executive chairman posted a short AI-generated clip of himself atop a bull, captioned simply.

Ride the ₿ull.

Michael Saylor shared the clip on X. It landed the same day BeInCrypto covered Strategy’s stock rally, which has coincided with easing fears the company would need to sell Bitcoin to cover its obligations.

The split reaction captures the divide around Strategy’s model. Schiff sees the same balance sheet risk he has flagged for over a year. Saylor, leaning on Bitcoin’s momentum, seems happy to broadcast his confidence publicly.

Whether Schiff’s warning ages any better this time may depend on how long Bitcoin’s rally holds.

Source: BeInCrypto