Peter Schiff Calls MicroStrategy STRC a Pure Ponzi Scheme

4 days ago
2 min read

Gold advocate Peter Schiff has escalated his attack on Michael Saylor's MicroStrategy, now operating as Strategy, branding its preferred share offering a textbook Ponzi structure. The criticism follows the company's worst quarterly loss on record and a public admission from Saylor that Bitcoin holdings could be sold to fund dividends.

Peter Schiff Calls MicroStrategy STRC a Ponzi Scheme

Peter Schiff intensified his ongoing dispute with Strategy's Michael Saylor on April 23, describing the firm's STRC perpetual preferred shares as "the most obvious Ponzi that has ever existed."

Schiff wrote, "STRC is a pure Ponzi. Bitcoin is kind of a hybrid of a Ponzi, a pyramid, and a chain letter."

Saylor Pledges Bitcoin Sales to Cover Dividends

The dispute escalated after Saylor's recent public admission. Michael Saylor said Bitcoin sales could help fund dividends.

Schiff predicted a different outcome. "Yesterday Saylor admitted that MSTR would sell Bitcoin if needed to pay the dividend on STRC. I think that type of 'commitment' is needed to keep the Ponzi going longer. But my guess is when the time comes, he'd suspend the dividend and crash STRC rather than crash Bitcoin," Peter Schiff posted on X on May 6, 2026.

Strategy Reports Massive Q1 2026 Loss

Strategy reported a $12.54B first-quarter 2026 net loss. Strategy holds 818,334 BTC at an average cost of $75,537. The MicroStrategy stock fell after the company reported a $14.5 billion Q1 2026 operating loss.

https://www.youtube.com/watch?v=KhtYB48ktDY

The STRC Structure Explained

Strategy introduced the STRC preferred stock last year to provide a high-yield, lower-volatility income instrument. The proceeds are used to acquire more Bitcoin. STRC has swelled to an $8.5 billion market cap since its IPO, making it the world's largest preferred equity by market capitalization. Strategy pays roughly $85 million monthly in cash dividends to STRC holders by issuing common stock and using those proceeds to fund the payouts.

The STRC offering provides an 11.5% yearly dividend with monthly distributions to finance Bitcoin acquisitions.

Strategy CEO Pushes Back

In an X post, Schiff likely referenced Strategy CEO Phong Le's interview on the Paul Barron show dated April 24, where he defended the firm's Perpetual Stretch Preferred Stock offering as "transparent."

https://www.youtube.com/watch?v=qpkvpSp-wBY

"We are taking the proceeds of Stretch and putting it into Bitcoin, right? It's not like we're taking the proceeds, and we're then using those proceeds to pay out dividends," Le said.

What Comes Next

The company has about $1.5 billion in annual obligations tied to preferred stock dividends and interest on debt, according to reported figures. The coming quarters will reveal whether Saylor's pledge to defend STRC dividends holds up under macro pressure. CoinCentral

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