Bitcoin critic Peter Schiff has questioned Strategy’s long-running Bitcoin investment model, arguing that the company’s declining Bitcoin yield weakens its appeal and reduces the incentive for investors to buy its shares rather than Bitcoin directly.

Schiff said in a post on X that Strategy’s Bitcoin yield could turn negative this year. He argued that the slowdown undermines the company’s core value proposition, which has been based on raising capital, acquiring more Bitcoin, and increasing the amount of BTC represented by each share.

His criticism followed Strategy’s latest financial update, which emphasized a stronger cash position rather than an additional Bitcoin purchase. Strategy increased its dollar reserve by $525 million to approximately $3.75 billion, strengthening liquidity while continuing to hold 843,775 Bitcoin. The company did not announce any new Bitcoin acquisitions alongside the update.

Supporters viewed the larger cash reserve as a sign of financial stability and discipline. Critics, including Schiff, questioned whether a slowing Bitcoin yield still justifies the additional corporate risks associated with owning Strategy shares instead of holding Bitcoin directly. That distinction is central to the debate because Strategy shares combine Bitcoin exposure with company-level factors such as capital structure, dividend obligations, liquidity management, and the terms on which the firm can raise or deploy capital.

According to Schiff, Strategy gained attention by using capital markets to expand its Bitcoin holdings and increase the BTC exposure backing each share. That approach allowed shareholders to obtain greater Bitcoin exposure without purchasing the cryptocurrency themselves.

However, Schiff noted that the company’s Bitcoin yield fell from 13.3% to 4.5% in roughly two months. He argued that this decline substantially reduces the advantage Strategy once offered investors. If the company’s Bitcoin yield no longer outperforms direct Bitcoin ownership, Schiff said investors should reconsider whether the extra corporate risk remains worthwhile. He suggested that buying Bitcoin outright may become the simpler option.

Strategy boosts liquidity while maintaining Bitcoin holdings

While Schiff focused on the company’s investment appeal, Strategy has moved to reinforce its balance sheet. Executive Chairman Michael Saylor announced that the company added $525 million to its dollar reserve, bringing the total to about $3.75 billion.

Strategy did not disclose any fresh Bitcoin purchases with the announcement. Even so, the company continues to hold 843,775 BTC, maintaining its position as the world’s largest corporate Bitcoin holder.

Management has repeatedly described the dollar reserve as a liquidity buffer. Because many of the company’s financial obligations are denominated in U.S. dollars, the reserve can help cover dividend payments and other commitments without requiring Bitcoin sales. In that context, the larger reserve can be read as a balance-sheet measure rather than a change in the company’s stated reliance on Bitcoin holdings as its long-term foundation.

In addition to increasing liquidity, Strategy repurchased $25 million of its STRC preferred stock. The preferred shares currently trade below their underlying claim value of $100, making the buyback part of the company’s broader capital management approach.

Supporters argue that the expanded cash reserve improves financial resilience while preserving Strategy’s long-term Bitcoin strategy. Andrew Webley, chief executive officer of The Smarter Web Company, has said Strategy’s preferred equity structure represents one of the most significant developments in Bitcoin corporate finance.

Schiff’s latest remarks put Strategy’s slowing Bitcoin yield at the center of renewed debate over the company’s model. At the same time, Strategy continues to prioritize liquidity management while retaining its substantial Bitcoin holdings as the foundation of its long-term strategy.