MicroStrategy (MSTR) announced a purchase of 1,550 Bitcoin for $101 million in early June 2026, prompting Euro Pacific Capital CEO Peter Schiff to claim that the company’s “infinite money glitch” is fundamentally broken.
Funding Strategy That Once Relied on Premium Share Sales
For several years, MicroStrategy issued new MSTR shares or convertible debt at prices that exceeded the Bitcoin assets recorded on its balance sheet. The premium pricing allowed each additional share to raise the Bitcoin‑per‑share ratio, reinforcing a self‑sustaining “flywheel” effect for the crypto‑focused firm.
Current Share Offering at a Discount
Schiff highlighted that the latest share issuance occurred at a price below the market value of the underlying Bitcoin, a stark contrast to earlier offerings that commanded a premium. By selling stock at a discount, MicroStrategy raised the capital needed for the $101 million Bitcoin acquisition while diluting existing investors’ holdings.
Implications for Investors and the Crypto Market
Investors now face the prospect that future MSTR share sales may continue to trade below Bitcoin’s market price, potentially eroding shareholder value. The episode also raises questions about the sustainability of using equity financing to fund large Bitcoin purchases in a volatile crypto market.