Peter Schiff Brands STRC’s 11.5% Preferred Stock Ponzi as MSTR Rallies 9.4%
Peter Schiff labels Strategy’s 11.5% perpetual STRC preferred stock the “most obvious Ponzi” scheme and criticizes SEC oversight. STRC shares near $100 par value as MicroStrategy stock jumps 9.39%, with the company holding 815,061 BTC valued at $63.38 billion.
1. Schiff’s Ponzi Allegation
Peter Schiff declared Strategy’s STRC perpetual preferred stock the “most obvious Ponzi” scheme, arguing that the 11.5% annual dividend is too good to be legitimate and alleging the structure misleads investors.
2. Dividend Structure and Bitcoin Purchases
STRC shares pay around an 11.5% annual dividend, disbursed monthly, with proceeds from new share sales used to acquire additional Bitcoin for the company’s treasury.
3. Stock Performance and Bitcoin Holdings
STRC stock climbed toward its $100 par value after MicroStrategy shares surged 9.39%, while the firm now holds 815,061 BTC on its balance sheet, worth approximately $63.38 billion.
4. Regulatory Criticism and Legal Risks
Schiff also slammed the SEC for permitting STRC promotions, warning of potential lawsuits if dividend payments are halted and claiming the product could constitute fraud under U.S. securities laws.