Strategy Inc., the company formerly known as MicroStrategy, just gave Peter Schiff exactly what he’s been waiting for: ammunition.

The company unveiled a Digital Credit Capital Framework on June 29 that includes something previously unthinkable for the firm that built its entire identity around accumulating Bitcoin. A Bitcoin Monetization Program authorizing the sale of up to $1.25 billion in Bitcoin for specific corporate purposes.

Schiff, the gold evangelist who has spent years warning that Strategy’s leveraged Bitcoin strategy would eventually crack, wasted no time declaring the company a “Bitcoin seller.” And technically, he’s not wrong. But the full picture is, as usual, more complicated than a tweet suggests.

What Strategy actually announced

The new framework doesn’t signal a fire sale. It authorizes discretionary Bitcoin sales for three narrowly defined purposes: funding a USD Reserve, covering preferred stock dividends, and supporting securities repurchases.

Alongside the monetization program, Strategy’s board approved up to $2 billion in securities repurchases. It also bumped the dividend on its Variable Rate Series A Perpetual Stretch Preferred Stock, known by the ticker STRC, to 12%.

Executive Chairman Michael Saylor framed the move as consistent with the company’s broader mission. While Strategy is now permitted to sell Bitcoin, Saylor emphasized that the company remains committed to its Bitcoin-first mentality.

Why Schiff is having a field day

Peter Schiff has been calling Strategy’s Bitcoin strategy a house of cards for years. His argument has always been straightforward: a company that uses leverage to buy a volatile asset will eventually be forced to sell that asset to meet its obligations.

The Bitcoin Monetization Program doesn’t prove Schiff right in the catastrophic sense he’s long predicted. Strategy isn’t liquidating under duress. But it does validate his core thesis that perpetual accumulation without any sell mechanism is unsustainable when you’re also issuing preferred stock, convertible notes, and equity offerings to fund those purchases.

The leverage question that won’t go away

The $1.25 billion authorization provides a pressure valve. Rather than being forced into emergency sales during a downturn, Strategy now has a pre-approved framework to sell Bitcoin in an orderly fashion when needed.

The $2 billion repurchase authorization adds another layer. Strategy could theoretically sell Bitcoin to fund buybacks of its own stock or preferred shares, essentially converting Bitcoin into equity management. That’s a far cry from the “never sell” ethos that made Saylor a folk hero in crypto circles.

Initial market reaction was muted. Pre-market trading showed some movement in MSTR stock, but nothing resembling panic.

What this means for investors

For MSTR shareholders, the framework changes the risk profile in subtle but important ways. The stock has historically traded as a leveraged Bitcoin bet, often at significant premiums to its net asset value. A monetization program that could reduce the Bitcoin stack, even modestly, may compress that premium over time.

The 12% preferred dividend rate on STRC is worth monitoring closely. If Bitcoin enters an extended flat or bearish period, those dividend obligations could accelerate the pace of Bitcoin sales under the monetization program. The $1.25 billion ceiling sounds large, but relative to Strategy’s total Bitcoin holdings, it represents a defined and manageable portion.