MicroStrategy’s Perpetual Preferred Shares Rally Near $100 Par as Schiff Slams 11.5% Yield
Peter Schiff labeled MicroStrategy’s perpetual preferred shares an “obvious Ponzi,” challenging its 11.5% annual dividend and SEC oversight. Those shares climbed to $99.50 near their $100 par value as MicroStrategy common stock surged 9.39%, driven by Bitcoin buys that now total 815,061 BTC worth $63.4 billion.
1. Schiff Brands Offering Ponzi Scheme
On April 23, Peter Schiff branded MicroStrategy’s perpetual preferred shares the “most obvious Ponzi” scheme, arguing investors are drawn by the 11.5% annual dividend and questioning regulatory approval by the SEC.
2. Dividend Structure and Bitcoin Purchase Mechanism
MicroStrategy issues perpetual preferred shares with an 11.5% annual dividend paid monthly, using sale proceeds to fund its aggressive Bitcoin accumulation strategy.
3. Stock Price Reaction and Bitcoin Holdings
The preferred shares climbed to $99.50, approaching their $100 par value, while MicroStrategy common stock surged 9.39% as the company’s Bitcoin treasury grew to 815,061 BTC valued at $63.38 billion.