{"id":2622,"date":"2026-04-23T22:17:42","date_gmt":"2026-04-23T22:17:42","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=2622"},"modified":"2026-04-23T22:17:42","modified_gmt":"2026-04-23T22:17:42","slug":"peter-schiff-labels-strategys-strc-offering-a-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/04\/23\/peter-schiff-labels-strategys-strc-offering-a-ponzi-scheme\/","title":{"rendered":"Peter Schiff Labels Strategy\u2019s STRC Offering a Ponzi Scheme"},"content":{"rendered":"\n
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Bitcoin critic Peter Schiff recently hosted a live audio discussion on X, where he described Strategy\u2019s STRC preferred stock as an obvious Ponzi scheme. He also called on Michael Saylor and others to challenge his claims.<\/p>\n\n\n\n

The discussion lasted about two hours, during which Schiff outlined why he believes the structure could ultimately leave retail investors with losses.<\/p>\n\n\n\n

Schiff Questions the Sustainability of the Model<\/strong><\/p>\n\n\n\n

Schiff began by explaining the basic concept of a Ponzi scheme, where returns to existing investors are funded by money from new participants rather than actual business income.<\/p>\n\n\n\n

He argued that MicroStrategy, referred to as Strategy, does generate some revenue from its software operations, but not nearly enough to support the 11.5 percent annual dividend promised to STRC investors.<\/p>\n\n\n\n

According to Schiff, the company raises funds by issuing new preferred shares and uses that capital to pay dividends to earlier investors. This creates a cycle where additional shares must continuously be sold to meet future payouts.<\/p>\n\n\n\n

He questioned how such payments can be sustained without sufficient underlying income, suggesting the structure depends heavily on attracting new investors.<\/p>\n\n\n\n

Bitcoin Purchases Fueled by STRC Issuance<\/strong><\/p>\n\n\n\n

Strategy has been aggressively accumulating Bitcoin. Recently, the company spent 2.54 billion dollars to acquire over thirty four thousand BTC at an average price of about 74 thousand dollars. This brings its total holdings to more than eight hundred fifteen thousand BTC, purchased for roughly 61.56 billion dollars.<\/p>\n\n\n\n

Schiff pointed to STRC as a key funding source behind these acquisitions. The preferred stock recently recorded a single day trading volume of 1.1 billion dollars, significantly above its historical average.<\/p>\n\n\n\n

Concerns Over Dividend Reliability and Share Value<\/strong><\/p>\n\n\n\n

Schiff emphasized that dividend payments on STRC are not guaranteed. Since they are discretionary, investors cannot force the company to continue payouts or redeem their shares. Their only option is to sell in the market.<\/p>\n\n\n\n

He argued that if dividend payments stop, investor demand could quickly disappear, potentially driving the share price to zero.<\/p>\n\n\n\n

Schiff also highlighted the rising yield on STRC, which increased from 9 percent at launch in July 2025 to 11.5 percent. He interprets this as a sign that demand is weakening, requiring higher returns to attract new buyers.<\/p>\n\n\n\n

Debate Over Company Solvency<\/strong><\/p>\n\n\n\n

During the discussion, one participant argued that Strategy remains solvent because the value of its Bitcoin holdings exceeds its market capitalization. This, they suggested, means the company could sell its assets and repay investors if needed.<\/p>\n\n\n\n

Schiff rejected this view, claiming that any large scale sale of Bitcoin by Strategy would likely trigger a sharp decline in price, undermining the value of those holdings.#crypto#cryptonews https:\/\/t.me\/coinsignalpublic<\/a> https:\/\/coinsignals.net<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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