Quick Read – Peter Schiff warns that MicroStrategy (MSTR) CEO Michael Saylor’s multi-billion buyback of zero-coupon convertible notes signals liquidity stress behind the scenes. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and MicroStrategy…
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Peter Schiff has spent years arguing Bitcoin is a mirage, so when he calls a move by Michael Saylor a warning sign, it carries weight. On a recent episode of The Peter Schiff Show titled “The Debt, the AI Bubble, and Strategy’s Liquidity Crisis… It’s All Connected,” Schiff zeroed in on MicroStrategy (NASDAQ:MSTR), now branded Strategy: the company’s buyback of zero-coupon convertible notes at 92 cents on the dollar.
Saylor pitched it as accretive. Schiff thinks it signals trouble ahead. The arbitrage that wasn’t Schiff’s argument starts with the time value of money.