Ponzi

Chamber

Galaxy

Bitcoin

<p class="is-style-lead">Peter Schiff has renewed his criticism of Strategy after the company sold part of its Bitcoin reserve to fund dividend payments.&nbsp;</p><div id="cn-block-summary-block_39eda6822c847b007f049694c531f570" class="cn-block-summary"><div class="cn-block-summary__nav tabs"><span class="tabs__item is-selected">Summary</span></div><div class="cn-block-summary__content"><ul class="wp-block-list"><li>Peter Schiff attacked Strategy’s new model after its $216 million Bitcoin sale for dividend payments.</li><li>Strategy still holds 843,775 BTC and $2.55 billion in U.S. dollar reserves after selling.</li><li>Bitcoin held near $63,369 as traders weighed Strategy’s sale, dividend needs, and market support.</li></ul></div></div><p>In a <a href="https://x.com/PeterSchiff/status/2074250362802827754" rel="noopener noreferrer nofollow">July 7 post on X</a>, Schiff called Strategy’s current structure a “mid-cycle Ponzi.”</p><p>Schiff said the company has moved away from its earlier model of issuing stock and debt to buy Bitcoin. He argued that the new model depends on selling Bitcoin to pay interest, dividends, debt costs, and possible buybacks.</p><figure class="wp-block-embed is-type-rich is-provider-x wp-block-embed-x"><div class="wp-block-embed__wrapper"><blockquote class="twitter-tweet"><p>It's evolving from early stage Ponzi mid cycle Ponzi.</p>— Peter Schiff (@PeterSchiff) <a href="https://x.com/PeterSchiff/status/2074250362802827754?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 6, 2026</a></blockquote></div></figure><p>You might also like: <a href="https://crypto.news/galaxy-turns-helios-bitcoin-mine-into-ai-hub-for-coreweave/" rel="noopener noreferrer nofollow"> Galaxy turns Helios Bitcoin mine into AI hub for CoreWeave </a></p><h2 class="wp-block-heading" id="strong-strategy-sells-btc-for-dividends-strong"><strong>Strategy sells BTC for dividends</strong></h2><p>The criticism followed Strategy’s latest Bitcoin sale. As reported yesterday, <a href="https://crypto.news/strategy-sells-3588-btc-to-fund-digital-credit-dividends/" rel="noopener noreferrer nofollow">Strategy sold 3,588 BTC</a> for about $216 million to fund dividends tied to its Digital Credit securities.</p><p>After the sale, Strategy said it still held 843,775 BTC and $2.55 billion in U.S. dollar reserves. The sale drew market attention because Strategy remains the largest publicly traded corporate Bitcoin holder and has long been linked to Michael Saylor’s buy-and-hold message.</p><h2 class="wp-block-heading" id="strong-dividend-structure-draws-fresh-scrutiny-strong"><strong>Dividend structure draws fresh scrutiny</strong></h2><p>Schiff said Strategy’s preferred stock structure could create pressure if prices fall and yields rise. He pointed to STRC and said a weaker price may force the company to raise dividends to support demand.</p><p>That concern centers on Strategy’s new funding structure. As <a href="https://crypto.news/strategy-authorizes-up-to-1-25b-in-bitcoin-sales-under-new-capital-plan/" rel="noopener noreferrer nofollow">previously reported</a>, the company authorized up to $1.25 billion in Bitcoin sales under its Digital Credit Capital Framework.</p><p>The framework allows proceeds to support cash reserves, preferred dividends, debt costs, and buybacks. Strategy also raised the STRC dividend rate to 12% and set buyback authority for preferred securities and Class A shares.</p><h2 class="wp-block-heading" id="strong-saylor-has-defended-limited-sales-strong"><strong>Saylor has defended limited sales</strong></h2><p>Michael Saylor has defended the company’s ability to sell limited amounts of Bitcoin without leaving its broader accumulation strategy. Saylor <a href="https://crypto.news/michael-saylor-defends-strategys-bitcoin-sales-plan-amid-dividend-concerns/" rel="noopener noreferrer nofollow">said</a> the goal is to avoid becoming a net Bitcoin seller rather than follow an absolute “never sell” rule.</p><p>Saylor also said any future sale would be part of a larger capital plan. “Even if we were to sell one Bitcoin, we’d be buying 10 to 20 more Bitcoin,” he said in earlier comments about the company’s treasury model.</p><h2 class="wp-block-heading" id="strong-bitcoin-price-holds-near-63k-strong"><strong>Bitcoin price holds near $63K</strong></h2><p>Bitcoin traded near $63,369 at the latest check, after moving between $61,350 and $64,435 during the session.<a href="https://www.google.com/finance/quote/MSTR:NASDAQ" rel="noopener noreferrer nofollow">Strategy stock</a> traded near $100.77, giving the company a market cap of about $33.65 billion.</p><figure class="wp-block-image size-large"><img width="1024" height="555" src="https://media.crypto.news/2026/07/image-38-1024x555.webp" alt="Source: Google Finance" class="wp-image-14471874"><figcaption class="wp-element-caption"> Source: Google Finance </figcaption></figure><p>Schiff warned that Bitcoin could face more pressure if Strategy sells more coins. He said the $58,000 support level may be at risk and argued that a break could push BTC below $50,000.</p><p>The market has not confirmed that view. Earlier today, crypto.news reported that Bitcoin recovered after Strategy’s 3,588 BTC sale, while Bitwise CEO Hunter Horsley <a href="https://crypto.news/bitwise-ceo-says-bitcoin-wants-higher-after-strategy-btc-sale/" rel="noopener noreferrer nofollow">said</a>, “Bitcoin wants to be higher.”</p><p>Strategy’s model remains under close watch because it connects Bitcoin reserves, preferred dividends, share sales, and market confidence. The next test is whether Bitcoin demand can absorb future sales if Strategy uses more of its approved monetization plan.</p><p>Read more: <a href="https://crypto.news/digital-chamber-files-amicus-brief-in-new-york-dormant-bitcoin-ownership-case/" rel="noopener noreferrer nofollow"> Digital Chamber files amicus brief in New York dormant Bitcoin ownership case </a></p>

Peter Schiff calls Strategy a Ponzi after $216M BTC sale

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