Strategy Inc. (NASDAQ:MSTR) Executive Chairman Michael Saylor outlined the company’s capital allocation strategy and dividend coverage, drawing sharp criticism from longtime Bitcoin (CRYPTO: BTC) skeptic Peter Schiff.

Strategy To Remain Disciplined

In an X post on June 29, Saylor said Strategy expects to remain disciplined in issuing new common shares, particularly when the company’s stock trades at or near 1x mNAV (net asset value).

In a separate post, he highlighted the company’s liquidity position, saying Strategy has significant capacity to support preferred dividend payments.

"With $2.55 billion of USD Reserve and $1.25 billion of BTC monetization capacity for reserve-building, Strategy has $3.80 billion of dividend coverage, representing 25.9 months," he explained.

Saylor’s comments come as investors continue to scrutinize Strategy’s financing model after the company disclosed its first Bitcoin sale in years to help fund preferred stock dividends.

Schiff Pushes Back

Schiff argued the latest disclosures reinforce concerns that Strategy is transitioning from being Bitcoin’s largest corporate buyer to a meaningful source of selling pressure.

"If Saylor crushed Bitcoin when he announced the sale of just 32 Bitcoin, imagine the impact of today’s announcement authorizing MSTR to sell $3.25 billion worth of Bitcoin," Schiff wrote.

At the price of $60,000, that’s more than 54,000 BTC. And if Bitcoin falls lower, there will have to be more selling to raise that dollar amount.

In another post, Schiff cautioned "MSTR is now a Bitcoin seller."

Strategy’s newly announced Bitcoin monetization program allows the company to sell BTC for multiple purposes – to raise up to $1.25 billion to fund its USD reserve, to pay preferred dividends and debt interest, and to fund $1 billion of preferred and $1 billion of common stock buybacks."

Schiff added, "Let’s see how the Bitcoin market reacts to the biggest buyer shifting to the biggest seller."

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