Ponzi

Bitcoin

Form

<h2 id="a-familiar-argument-with-new-ammunition">A familiar argument with new ammunition</h2>
<p><a href="https://x.com/PeterSchiff" rel="noopener noreferrer nofollow">@PeterSchiff</a> is back on his favorite target. The longtime gold bull and <a href="https://x.com/search?q=%24BTC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$BTC</a> skeptic has repeatedly labeled <a href="https://x.com/Strategy" rel="noopener noreferrer nofollow">@Strategy</a>'s <a href="https://x.com/search?q=%24STRC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$STRC</a> preferred stock a Ponzi scheme, <cite>arguing that because Bitcoin generates no profits or dividends, existing investors can only realize gains if new participants buy in at higher prices.</cite> He has extended that critique to STRC specifically, <cite>contending that it relies on continuous new investment to sustain returns for earlier holders.</cite> What has changed now is the timing.</p>
<p><cite>In an 8-K filing with the U.S. Securities and Exchange Commission dated June 1, 2026, Strategy disclosed that between May 26 and May 31 the company sold 32 Bitcoin at an aggregate sale price of $2.5 million, implying an average sale price of $77,135 per coin.</cite><cite>The filing states explicitly that proceeds from the Bitcoin sales are expected to be used to fund distributions on preferred stock.</cite><cite>It was Strategy's first Bitcoin sale in four years.</cite></p>
<h2 id="small-in-scale-significant-in-precedent">Small in scale, significant in precedent</h2>
<p><cite>Strategy still held more than 843,700 BTC at the end of May, meaning the sale represented about 0.004% of its total holdings.</cite><cite>Two Wall Street analysts described the roughly $2.5 million sale as economically immaterial, viewing it as a tactical move to help fund preferred-stock dividends rather than a meaningful policy change.</cite> The doom framing, in other words, oversells it.</p>
<p>But the structural point is harder to dismiss. <cite>STRC pays a variable annual dividend currently set at 11.5%, and when the stock trades at or above its $100 par value, Strategy issues new shares and channels proceeds into Bitcoin purchases.</cite><cite>Strategy's combined preferred dividend stack represents a substantial recurring monthly cash obligation, with STRC alone generating roughly $80 to $90 million in monthly dividend commitments.</cite> For the first time, the asset Strategy was built to accumulate is the thing directly servicing those obligations.</p>
<p><cite>Saylor himself told investors during the Q1 2026 earnings call that the company "may sell some Bitcoin" if needed to fund the STRC dividend.</cite><cite>After the latest sale, he said on X that Strategy's goal is "to make STRC the best credit instrument in the world."</cite><cite>History offers some context: the only comparable Bitcoin sale, in December 2022, occurred near the bottom of the bear market, and over the following years Bitcoin rebounded to record highs while Strategy dramatically expanded its holdings.</cite></p>
<p>Whether the model can run indefinitely is a fair question. Whether it is a Ponzi is Schiff's word, not a verdict.</p>
<p><strong>Sources:</strong><br><a href="https://www.sec.gov/Archives/edgar/data/0001050446/000119312526237907/mstr-ex99_1.htm" rel="noopener noreferrer nofollow">Strategy Inc. Form 8-K, SEC Filing (June 2026)</a><br><a href="https://www.coindesk.com/markets/2026/06/01/analysts-agree-strategy-s-bitcoin-sale-was-immaterial-differ-on-future-signals" rel="noopener noreferrer nofollow">CoinDesk: Strategy's Bitcoin Sale Triggers Debate Over Saylor's Commitment</a><br><a href="https://www.benzinga.com/crypto/cryptocurrency/26/05/52240434/peter-schiff-calls-strategys-preferred-stock-most-obvious-ponzi-scheme-because-the-michael-saylor-led-company-is-open-about-it" rel="noopener noreferrer nofollow">Benzinga: Peter Schiff Calls Strategy's Preferred Stock the Most Obvious Ponzi Scheme</a></p>

Schiff calls Strategy a Ponzi again, and this time Saylor sold

Table of Contents

BSCN

Other articles published on Jun 1, 2026

Join our free newsletter for daily crypto updates!