Interesting point Peter Schiff recently raised on X regarding MicroStrategy and Bitcoin. The economist and well-known gold advocate highlighted an aspect that not everyone considers when discussing institutional Bitcoin accumulation.

According to reports, MicroStrategy has increased the dividend rate of its perpetual preferred shares STRC from 10% last September to the current 11.5%. It seems like a move to maintain the ability to continuously finance Bitcoin purchases, but Peter Schiff points out the flip side: with the ongoing issuance of STRC, cash consumption is accelerating.

This creates an interesting scenario. If cash reserves run out, there is a real risk that dividends could be suspended. And here lies the problem Schiff highlights: Michael Saylor could be forced to sell Bitcoin to cover dividend payments. Not exactly what one would expect from an accumulation strategy.

Chaitanya Jain, the company's head of strategy, had described STRC and MicroStrategy together as the 'ultimate machine for Bitcoin accumulation.' He probably didn't have this scenario in mind when he said it. Large-scale institutional buying could indeed alter the market structure, but Peter Schiff's point is that the model itself might contain the seeds of its fragility.

It's worth watching how this dynamic unfolds in the coming months. If things start to tighten, we could see selling pressure quite different from what the market is currently pricing in.