Peter Schiff Knocks Strategy for Claiming Its Bitcoin Reserve Can Cover Dividends for 32 Years

Key highlights:

• Strategy says its BTC reserves can fund dividend payments for 32 years.
• Peter Schiff argues that a dip in Bitcoin prices can deplete its Bitcoin holdings.
• Critics opine that selling BTC to fund dividends will drain Strategy’s BTC holdings faster.

US-based economist Peter Schiff has poked holes in Strategy’s claim that its Bitcoin reserve can support preferred-share dividends for 32 years. 

Despite holding the largest corporate Bitcoin reserve, critics say market conditions can force Strategy to sell BTC to cover those dividends, triggering a grim chain reaction for the company.

Strategy says Bitcoin reserves support long-term obligations

In a post on X, Strategy disclosed that its BTC holdings provide “32 years of dividend coverage,” touting the figure as proof that its treasury model can withstand long-term financial obligations despite market volatility.

The company, led by executive chairman Michael Saylor, holds 846,842 BTC valued at $54.5 billion. According to the company’s disclosures, its annual dividend obligations to shareholders hover around $1.7 billion, giving it coverage for 32 years.

Source: Strategy

Furthermore, Strategy is betting that Bitcoin will appreciate at roughly 3.1% annually for the value of its reserve to keep pace with dividend and interest costs. The disclosures come amid rising concerns that Strategy’s preferred-stock dividends could become unsustainable given Bitcoin’s lackluster prices in recent months.

The company has since expanded its financing strategy through preferred-share offerings and debt-related products to fund its aggressive Bitcoin purchases. The company has raised capital through its STRF, STRC, STRK, and STRD preferred-share offerings, with STRC tumbling below $92 for the first time since its launch amid rising investor concern.

Peter Schiff rails against Strategy’s 32-year dividend payment claim

Long-time Strategy critic Peter Schiff criticized the claim, arguing that the projection depends on several assumptions remaining favorable for up to three decades. Schiff noted that if Strategy issues any more preferred shares or increases the dividends on its existing offerings, its 32-year dividend payment claim will fall apart.

“That assumes you don’t raise the dividend on the preferreds, you don’t issue any more preferred shares, and the price of Bitcoin doesn’t fall,” wrote Schiff.

Furthermore, the economist opined that a dip in Bitcoin prices will hurt Strategy’s ability to sustain dividend payments for 32 years with its reserves. At press time, Bitcoin is down nearly 50% from its all-time high, with macroeconomic forecasts casting a shadow of doubt on the largest cryptocurrency. 

Schiff also warned that any attempts by Strategy to start selling Bitcoin to cover its obligations to shareholders will trigger a bleak domino effect. He predicted that Strategy’s BTC sales will cause the Bitcoin price to crash, further depleting its reserves “much quicker.”

Back in November 2025, Strategy claimed that it had 71 years of dividend coverage, but an underwhelming BTC price has seen the figure slip to 32 years in under seven months.

Early in the month, Strategy sold 32 BTC for $2.5 million to fund preferred stock distribution, a move that raised eyebrows among investors. In a panel session at BTC Prague, Michael Saylor defended the sale while clarifying that Strategy will sell even more Bitcoin to meet its shareholder obligations.