Arca Chief Investment Officer Jeff Dorman pushed back on Sunday against rising speculation that Strategy could be forced to liquidate portions of its bitcoin holdings, saying that the fears circulating online ignore the company’s underlying financial strength and structural safeguards.
The debate resurfaced after longtime Bitcoin critic Peter Schiff reignited pressure on Strategy’s leveraged bitcoin strategy. Posting on X, Schiff argued that the firm’s reliance on income-focused buyers of its preferred shares leaves it exposed if demand slows. He claimed the advertised yields “will never actually be paid,” warned that the capital structure could slide into a “death spiral,” and predicted the company is “destined for bankruptcy.” Schiff also invited CEO Michael Saylor to debate him at Binance Blockchain Week in Dubai, appearing to seek a high-profile clash over Strategy’s aggressive bitcoin accumulation.
Dorman took aim at these claims, describing them as “stupid, inaccurate takes” and insisting that concerns about forced bitcoin sales misrepresent Strategy’s actual risk profile. While he did not mention Schiff directly, his comments were a clear rebuttal to critics who argue the company could struggle in a deep bitcoin downturn.
According to Dorman, Saylor’s 42% ownership stake all but eliminates the possibility of an activist-led shakeup that might push the company to sell assets. He added that none of Strategy’s outstanding debt agreements contain covenants that would require bitcoin to be liquidated if market conditions deteriorate. Dorman also pointed out that Strategy’s longstanding software division continues to produce positive cash flow, which helps cover interest obligations he views as manageable. Companies rarely default simply because a maturity date approaches, he said, noting that lenders routinely extend loans in the familiar “extend and pretend” pattern.
Despite expanding its bitcoin reserves, Strategy’s stock has struggled this year. Class A shares ended Friday at $199.74, down 4.22% on the day and 33.42% year to date, while bitcoin has edged up about 0.4% in the same period. Data from StrategyTracker shows the company’s diluted market NAV multiple at roughly 1.06x — suggesting shares trade only slightly above a conservative, fully diluted estimate of their bitcoin-backed value.
Dorman also rejected claims that Strategy poses a systemic risk to the bitcoin market. The firm is no longer a major marginal buyer, he said, especially compared with the scale of ETF inflows. “If you follow anyone saying MSTR is a risk to BTC, tell them to call me,” he wrote.
Bitcoin traded near $94,293 at 11 p.m. UTC, down 1.2% over the past 24 hours.
