Peter Schiff Says Saylor Wiped 66% Off BTC Yield

Crypto critic Peter Schiff is pointing out a sharp drop in MicroStrategy's Bitcoin yield. The company recently sold over 5 million shares to raise $544.5 million, but it did not buy any new Bitcoin with the cash. Schiff notes that this share dilution dropped the company Bitcoin yield down to 4.5 percent, falling from 13.3 percent in late May.

This metric tracks how much Bitcoin sits behind each share of the stock. When a company issues more shares without adding to its crypto treasury, the yield per share goes down. MicroStrategy even warned investors about this exact risk in its previous financial filings, noting that fast share growth without matching coin purchases leads to a negative outcome for shareholders.

The firm also spent $25 million to buy back some of its preferred shares, which saves a small amount on annual dividend payments. However, upcoming second quarter earnings reports arriving this week will show official figures and put Schiff's warning to the test. Market watchers are keeping a close eye on the results to see how the treasury strategy holds up.

While critics warn that stock dilution hurts common shareholders, supporters argue that the company holds massive reserves and can comfortably cover its upcoming obligations. Traders should watch the upcoming earnings report closely to see how the corporate treasury handles its cash pile and token holdings moving forward.