Key Highlights
- Peter Schiff described Strategy’s STRC perpetual preferred offering as “the most obvious Ponzi that has ever existed”
- Schiff criticized the SEC for permitting Michael Saylor’s promotion of STRC
- The STRC instrument delivers an 11.5% yearly dividend with monthly distributions to finance Bitcoin acquisitions
- STRC shares hovered around their $100 par value while MSTR climbed 9.39% to reach $179.36 on Wednesday
- Strategy’s treasury contains 815,061 Bitcoin valued at roughly $63.38 billion
Peter Schiff, who has maintained a consistent critical stance toward Bitcoin, intensified his ongoing dispute with Strategy’s Michael Saylor on April 23, declaring the firm’s STRC perpetual preferred offering “the most obvious Ponzi that has ever existed.”
Schiff delivered these remarks through an X post, contending that individuals purchasing STRC prioritize the 11.5% yearly dividend over acquiring genuine Bitcoin exposure.
Strategy issues STRC shares to generate capital, which the company subsequently deploys to acquire additional Bitcoin. The instrument distributes dividends monthly, with recent adjustments implementing semi-monthly payments.
Schiff contends this framework operates in a circular manner — the enterprise depends on fresh investor capital to continue purchasing Bitcoin, which subsequently bolsters the share price and sustains dividend distributions.
He directed criticism toward the U.S. Securities and Exchange Commission as well, declaring its inaction regarding Saylor’s STRC promotion served as “proof that we don’t need an SEC.”
Schiff conducted two X Spaces sessions and extended invitations to skeptics, including online fraud investigator Coffeezilla, to join and challenge his position. He explicitly mentioned Saylor among those he hoped would participate.
During the previous week, Schiff cautioned that Saylor might encounter legal action when STRC dividends eventually cease and share prices decline, characterizing the promotional efforts as “so misleading as to constitute fraud.”
Strategy Stands Behind Its Approach
Schiff’s perspective faces opposition from various quarters. Strive CEO Matt Cole characterized STRC as “a clear multi-trillion dollar idea,” asserting it surpasses private credit as a product across nearly all metrics.
Strategy recently proclaimed STRC “the world’s largest preferred stock.” The STRC treasury has amassed 17,204.73 Bitcoin independently.
Strategy’s latest Bitcoin purchase occurred on April 20, when the company acquired 34,164 Bitcoin for its reserves.
Trading Performance
STRC concluded Wednesday’s session at $99.44, advancing 0.15%, with volume reaching 2.66 million shares — exceeding its typical 2.4 million average.
MSTR shares finished Wednesday’s trading up 9.39% at $179.36. The rally accompanied Bitcoin’s climb past $79,000 following President Trump’s announcement regarding renewed U.S.-Iran peace negotiations.
TD Cowen analyst Lance Vitanza maintained a buy rating on MSTR while preserving his $385 price objective. He noted the semi-monthly dividend arrangement establishes a funding mechanism for ongoing Bitcoin acquisitions.
Bitcoin traded around $77,900 at press time, with a 24-hour fluctuation between $77,456 and $79,468.
Strategy maintains its position as the dominant public Bitcoin treasury corporation, controlling 815,061 Bitcoin with an approximate value of $63.38 billion.
