Peter Schiff Labels STRC Preferred Shares Ponzi, MicroStrategy Shares Jump 9.39%
Gold bug Peter Schiff denounced Strategy’s STRC perpetual preferred shares as the “most obvious Ponzi” scheme and criticized SEC oversight. STRC shares are reclaiming their par value as MicroStrategy shares surged 9.39% on raised analyst targets.
1. Peter Schiff’s Ponzi Allegations
Peter Schiff denounced Strategy’s STRC perpetual preferred shares as the “most obvious Ponzi” scheme and criticized SEC oversight for allowing its promotion. He warned of potential lawsuits if dividends are canceled and labeled the structure misleading for Bitcoin purchases.
2. STRC Stock Rebound and Dividend Strategy
STRC shares have rebounded toward their $100 par value after slipping below that level earlier. Strategy issues these shares with an 11.5% annual dividend, using share sales to fund additional Bitcoin acquisitions.
3. MicroStrategy Share Rally
MicroStrategy shares surged 9.39%, driven by raised analyst price targets and renewed investor interest in the company’s Bitcoin accumulation strategy. The company holds 815,061 BTC valued at $63.38 billion, reinforcing its role as a leading Bitcoin treasury entity.
4. Regulatory and Market Implications
Schiff’s public clash with Strategy and criticism of SEC oversight may increase scrutiny of perpetual preferred structures and regulatory compliance. Investors will monitor any SEC response and assess whether yield-driven demand for STRC shares remains sustainable.