MicroStrategy Stock Jumps 9.4% After Schiff Calls STRC 'Ponzi Scheme'
MSTR soared 9.39% after Peter Schiff branded its STRC perpetual preferred shares an ‘obvious Ponzi scheme’. Strategy holds 815,061 BTC worth $63.38 billion and pays an 11.5% annual dividend on STRC shares.
1. Peter Schiff’s Criticism
Peter Schiff labeled Strategy’s STRC perpetual preferred shares the “most obvious Ponzi scheme ever”, criticizing the SEC for allowing its promotion and warning investors of potential fraud risk if dividends are canceled.
2. STRC Share Performance and Dividend
STRC stock climbed toward its $100 par value following a more than 9% jump in MSTR equity, driven by investors chasing the 11.5% annual dividend paid monthly to fund further Bitcoin purchases.
3. Bitcoin Holdings and Treasury Strategy
MicroStrategy holds 815,061 BTC valued at $63.38 billion, using proceeds from STRC share sales and equity for its aggressive Bitcoin accumulation strategy, which underpins the company's treasury growth.