Bitcoin News Today: MicroStrategy's Bitcoin 'Never Sell' Doctrine Cracks as It Builds $1.44B Reserve

Bitcoin's recent volatility has intensified scrutiny on MicroStrategy's (MSTR) aggressive Bitcoin accumulation strategy, with economist Peter Schiff leading the charge against CEO Michael Saylor. Following a 7.82% drop in BTC to $84,631, Schiff [labeled Saylor "Wall Street's biggest con man"](https://en.bitcoinsistemi.com/after-bitcoins-major-drop-peter-schiff-speaks-out-today-marks-the-beginning-of-the-end-for-microstrategy-saylor-is-wall-streets-biggest-con-man/) and accused MicroStrategy of operating a "fraudulent" business model. The criticism comes as the company [announced a $1.44 billion U.S. dollar reserve](https://yellow.com/news/strategy-establishes-dollar144-billion-usd-reserve-slashes-2025-bitcoin-targets-amid-market-downturn) to stabilize dividend payments, a move that contradicts its long-held "never sell Bitcoin" narrative.

MicroStrategy, now the largest corporate holder of Bitcoin with 650,000 BTC ($48.38 billion value), [raised the reserve by selling 8.214 million shares](https://yellow.com/news/strategy-establishes-dollar144-billion-usd-reserve-slashes-2025-bitcoin-targets-amid-market-downturn) of Class A stock in late November. This follows a broader strategy shift, including [slashing 2025 Bitcoin yield targets](https://yellow.com/news/strategy-establishes-dollar144-billion-usd-reserve-slashes-2025-bitcoin-targets-amid-market-downturn) from 30% to 22%-26% and reducing the projected dollar gain from $20 billion to $8.4 billion-$12.8 billion. The company now holds enough cash to cover 21 months of preferred stock dividends, though [its market capitalization of $45 billion](https://yellow.com/news/from-never-selling-to-potential-btc-liquidation-%E2%80%94-is-saylors-core-narrative-under-threat) remains below the $55 billion value of its Bitcoin holdings.

Schiff's critique extends beyond MicroStrategy, [framing Bitcoin itself as a speculative asset](https://en.bitcoinsistemi.com/after-bitcoins-major-drop-peter-schiff-speaks-out-today-marks-the-beginning-of-the-end-for-microstrategy-saylor-is-wall-streets-biggest-con-man/) lacking the "objective and industrially real value" of gold. He argues that Bitcoin's price swings reflect its subjective nature, contrasting with gold's physical properties and institutional adoption. This view aligns with broader trends: gold outperformed BTC by 58% in 2025 while Bitcoin fell 12%, as [central banks and asset managers favor gold](https://www.coindesk.com/markets/2025/08/27/nvidia-earnings-loom-large-with-bitcoin-traders-eyeying-correlation) for reserve stability.

The market's reaction to MicroStrategy's pivot has been mixed. While the company's Bitcoin purchases continued in November-adding 130 BTC at ~$89,960 each-its stock price has [fallen 41% year-to-date](https://www.lookonchain.com/feeds/38796). [Analysts note a widening gap](https://yellow.com/news/from-never-selling-to-potential-btc-liquidation-%E2%80%94-is-saylors-core-narrative-under-threat) between the firm's market cap and Bitcoin treasury value, raising concerns about operational risks and dilution. [JPMorgan warns](https://yellow.com/news/strategy-establishes-dollar144-billion-usd-reserve-slashes-2025-bitcoin-targets-amid-market-downturn) that potential index removal from the Nasdaq-100 could trigger $9 billion in outflows.

[Saylor defends the reserve](https://yellow.com/news/strategy-establishes-dollar144-billion-usd-reserve-slashes-2025-bitcoin-targets-amid-market-downturn) as a tool to "navigate short-term market volatility" without sacrificing Bitcoin's long-term vision. However, critics argue the move undermines the company's anti-fiat ethos. [Commentator Jacob King wrote](https://yellow.com/news/from-never-selling-to-potential-btc-liquidation-%E2%80%94-is-saylors-core-narrative-under-threat) "They spent years calling fiat worthless, yet now they're bailing themselves out by dumping stock."

With [Bitcoin ETFs seeing a modest $70 million weekly inflow](https://cointelegraph.com/news/spot-bitcoin-etfs-end-four-week-outflows-70m-weekly-inflows) after four weeks of outflows, the debate over Bitcoin's role in institutional portfolios remains unresolved. For now, MicroStrategy's strategy-and Saylor's reputation-are under renewed pressure as the market tests the sustainability of its leveraged Bitcoin bet.