Peter Schiff Labels Strategy's STRC Preferred Stock 'Most Obvious Ponzi' in Heated Attack

Key Highlights

Table of Contents

Gold advocate Peter Schiff characterized Strategy’s STRC perpetual preferred shares as “the most obvious Ponzi that has ever existed”
Schiff criticized the Securities and Exchange Commission for permitting Michael Saylor’s STRC promotional activities
The STRC instrument delivers an 11.5% yearly dividend, distributed monthly, to finance Bitcoin acquisitions
STRC shares hovered around their $100 par value; MSTR jumped 9.39% to $179.36 during Wednesday’s session
Strategy maintains a treasury of 815,061 Bitcoin valued at roughly $63.38 billion

Long-standing Bitcoin skeptic Peter Schiff intensified his ongoing dispute with Strategy’s executive chairman Michael Saylor on April 23, characterizing the firm’s STRC perpetual preferred shares as “the most obvious Ponzi that has ever existed.”

The prominent gold advocate voiced these criticisms through a post on X, contending that STRC purchasers are primarily motivated by the 11.5% yearly dividend rather than seeking authentic Bitcoin exposure.

Sometimes a Ponzi scheme is not obvious. The only sign may be that it seems too good to be true. But that is not the case with $STRC, which is the most obvious Ponzi that has ever existed. The fact that the SEC allows @Saylor to promote it is more proof that we don’t need an SEC.

— Peter Schiff (@PeterSchiff) April 22, 2026

Strategy issues STRC securities to generate capital, subsequently deploying those proceeds to acquire additional Bitcoin. The instrument distributes dividends on a monthly basis, though this was recently modified to semi-monthly distributions.

Schiff’s contention centers on what he perceives as a self-reinforcing mechanism — the enterprise depends on fresh capital inflows to continue accumulating Bitcoin, which subsequently bolsters the share price and sustains dividend payments.

The economist also directed criticism toward the Securities and Exchange Commission, asserting that its inability to prevent Saylor from marketing STRC serves as “proof that we don’t need an SEC.”

Schiff organized two discussions on X Spaces, extending invitations to detractors including internet fraud analyst Coffeezilla to challenge his position. He explicitly mentioned Saylor as someone he hoped would engage in the debate.

During the previous week, Schiff cautioned that Saylor might encounter legal action when STRC dividend payments ultimately cease and the stock declines, characterizing the promotional efforts as “so misleading as to constitute fraud.”

Strategy Stands Behind Its Approach

Schiff’s perspective isn’t universally shared. Strive Chief Executive Matt Cole characterized STRC as “a clear multi-trillion dollar idea,” asserting it represents a superior alternative to private credit across nearly every metric.

Strategy has recently proclaimed STRC as “the world’s largest preferred stock.” The STRC vehicle itself has amassed 17,204.73 Bitcoin to date.

Strategy’s latest Bitcoin purchase occurred on April 20, when the company acquired 34,164 Bitcoin for its reserves.

Trading Performance

STRC finished Wednesday’s trading at $99.44, representing a 0.15% gain, with volume reaching 2.66 million shares — exceeding its typical average of 2.4 million.

MSTR shares concluded Wednesday’s session with a 9.39% advance to $179.36. The rally coincided with Bitcoin surging past $79,000 following President Trump’s announcement regarding resumed U.S.-Iran diplomatic negotiations.

TD Cowen equity analyst Lance Vitanza maintained his buy recommendation on MSTR while preserving his $385 price objective. He noted that the semi-monthly dividend framework establishes a continuous funding mechanism for ongoing Bitcoin accumulation.

Bitcoin was changing hands around $77,900 as of this writing, with intraday fluctuations spanning from $77,456 to $79,468.

Strategy continues to operate as the largest publicly-traded corporate Bitcoin holder, controlling 815,061 Bitcoin valued at approximately $63.38 billion.

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