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MSTR

<h2 id="schiff-targets-strategy-s-preferred-stock">Schiff Targets Strategy's Preferred Stock</h2>
<a href="https://x.com/PeterSchiff" rel="noopener noreferrer nofollow">@PeterSchiff</a> has sharpened his long-running attack on <a href="https://x.com/Saylor" rel="noopener noreferrer nofollow">@Saylor</a>, this time directing his fire specifically at <a href="https://x.com/search?q=%24STRC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$STRC</a>, Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock. Schiff has called it a "classic centralized Ponzi scheme," drawing a pointed distinction from <a href="https://x.com/search?q=%24BTC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$BTC</a>, which he describes as a decentralized variant of the same problem.
<cite>STRC is a financial instrument launched in July 2025 by Strategy Inc., the Bitcoin-focused company formerly known as MicroStrategy, led by Michael Saylor.</cite><cite>The model is straightforward: Strategy raises cash by issuing STRC shares through at-the-market offerings, then uses the proceeds to buy more Bitcoin, without diluting common stock shareholders.</cite><cite>The instrument carries a stated liquidation preference of $100 per share and currently pays an 11.5% annual dividend distributed monthly in cash. Strategy first priced STRC in July 2025, and the dividend was increased seven consecutive months before holding steady at 11.5% in April, the first month without an increase since inception.</cite>
<cite>Schiff's core Ponzi argument rests on a textbook definition: income paid out to existing investors comes from bringing in new investors, with proceeds from new buyers used to service payments to existing holders.</cite><cite>He also claims Strategy has no meaningful income, noting that its software business generates some revenue, but nowhere near enough to cover the dividend obligations on STRC.</cite>
<h2 id="a-feud-that-shows-no-sign-of-cooling">A Feud That Shows No Sign of Cooling</h2>
<cite>Schiff's core structural argument is that the model is circular: Strategy relies on new investor money to keep buying Bitcoin, which supports the stock price, which allows it to raise more money.</cite> He has also criticised the SEC for permitting Saylor to promote the instrument publicly.
<cite>Schiff has been clear that his objection is not about concealment. "I never accused Strategy of hiding the scheme. In contrast, I called STRC the most obvious Ponzi precisely because MSTR is so open about it," he said.</cite>
Not everyone shares that reading. <cite>Supporters of the instrument argue that Saylor does not need Bitcoin to go parabolic for STRC to work. He needs it to appreciate roughly 2% a year, enough to service the dividend and keep the mechanism turning.</cite><cite>Most legal analysts have also noted that Strategy openly discloses in its SEC filings that dividends depend on continued capital raises, a transparency that traditional Ponzi schemes by definition lack.</cite>
<cite>The latest flare-up came after Strategy Chair Michael Saylor admitted during the company's first-quarter earnings call that <a href="https://x.com/search?q=%24MSTR&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$MSTR</a> may sell some Bitcoin to pay dividends on its preferred stock.</cite><cite>Schiff labelled that admission as further evidence of a Ponzi structure being prolonged, predicting that "when the time comes, he'd suspend the dividend and crash STRC rather than crash Bitcoin."</cite>
The dispute underscores Schiff's broader and long-standing skepticism toward digital assets as a whole, and shows no sign of resolution as Strategy continues to expand its Bitcoin treasury and its suite of capital-raising instruments.
Sources: <a href="https://finance.yahoo.com/markets/crypto/articles/bitcoin-critic-peter-schiff-calls-053024606.html" rel="noopener noreferrer nofollow">Yahoo Finance: Peter Schiff Calls Strategy's STRC "Obvious Ponzi" Scheme</a> <a href="https://www.thestreet.com/crypto/markets/milk-road-co-founder-reveals-why-strategys-strc-isnt-the-ponzi-schiff-claims" rel="noopener noreferrer nofollow">TheStreet: Why Strategy's STRC Isn't the Ponzi Schiff Claims</a> <a href="https://www.benzinga.com/crypto/cryptocurrency/26/05/52357678/peter-schiff-says-michael-saylor-would-crash-strc-rather-than-bitcoin-by-suspending-strateg" rel="noopener noreferrer nofollow">Benzinga: Peter Schiff Says Saylor Would Crash STRC Rather Than Bitcoin</a>

Peter Shiff Says Strc Is Another "Ponzi" Scheme Like Bitcoin

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