Schiff Warns Strategy’s Preferred Stock Channel Is Closed, Even as Common Stock Sales Fund New Bitcoin Buys

Key points

• Peter Schiff stated on October 2 that Strategy cannot sell more STRC preferred stock to fund Bitcoin purchases, despite the stock recovering to $99.4.
• Strategy’s last STRC sale occurred in mid-May, raising $1.95 billion; subsequent filings show no new preferred stock issuance.
• Recent Bitcoin purchases, including 1,665 BTC in late September, were funded by common stock (MSTR) sales and cash reserves, not preferred stock.
• Michael Saylor posted a 'more orange' chart on October 4, a signal historically preceding new Bitcoin acquisitions, though no official filing has confirmed a new buy yet.
• Strategy holds 847,666 BTC, valued at approximately $72.29 billion, with a $5.02 billion cash reserve supporting dividends and interest.

Background

MicroStrategy has been a dominant force in corporate Bitcoin accumulation, often using preferred stock offerings to fund purchases. Recent archive coverage from September 2026 noted the company’s continued buying despite market volatility, including a 950 BTC purchase funded by cash reserves. The current situation marks a shift in funding strategy, moving away from preferred stock issuance toward common stock sales and existing cash reserves, a change highlighted by critics like Schiff.

How outlets are covering it

BeInCrypto emphasizes Schiff’s argument that the preferred stock channel is closed, noting that STRC’s recovery to near par does not equate to renewed issuance capability. Newsquawk provides a factual update on Strategy’s recent at-the-market (ATM) common stock sales, noting that 92,894 MSTR shares were sold for $15.7 million in early October, with proceeds used for Bitcoin purchases. Startup Fortune highlights Saylor’s 'orange chart' signal as a leading indicator for future buys, contrasting with the mNAV premium collapse that has reduced the stock’s valuation relative to its Bitcoin holdings. The outlets differ in focus: BeInCrypto centers on Schiff’s critique, Newsquawk on the mechanics of recent sales, and Startup Fortune on market sentiment and Saylor’s signaling.

Why it matters

The shift in funding strategy from preferred stock to common stock sales and cash reserves could impact the pace and scale of MicroStrategy’s Bitcoin accumulation. If the preferred stock channel remains closed, the company may rely more heavily on common stock dilution or cash reserves, which could affect shareholder value and market perception. Saylor’s continued signaling of buys, despite the funding shift, suggests confidence in the company’s ability to maintain its accumulation strategy, but the long-term sustainability of this approach depends on market conditions and the company’s financial flexibility.

What to watch

Strategy’s next Monday filing will reveal whether common stock sales continue to fund Bitcoin purchases. The market will watch for any new 8-K filings confirming acquisitions signaled by Saylor’s 'orange chart' post. Additionally, the trajectory of STRC’s price and any potential changes in the company’s funding strategy will be key indicators of its future Bitcoin accumulation capacity.