Peter Schiff Labels STRC ‘Obvious Ponzi’; 11.5% Dividend Shares Rebound Near Par
Peter Schiff labeled Strategy’s STRC preferred shares an “obvious Ponzi” scheme while criticizing SEC oversight and highlighting the 11.5% annual dividend structure. STRC shares rebounded towards their $100 par value after MicroStrategy’s stock surged 9.39%, as Strategy continues using STRC sales to fund its 815,061 BTC treasury.
1. Schiff Criticizes STRC as Ponzi
Peter Schiff escalated his long-running feud with Michael Saylor by calling Strategy’s STRC perpetual preferred stock the “most obvious Ponzi scheme” and admonished the SEC for allowing its promotion. He argued that high-yield investors are chasing the 11.5% annual dividend rather than actual Bitcoin exposure.
2. Dividend Structure and Funding Mechanism
STRC shares offer an 11.5% annual dividend paid monthly and are sold to fund additional Bitcoin purchases. Proceeds from each issuance are used to acquire more BTC, reinforcing Strategy’s thesis on leveraging perpetual preferred stock for yield and Bitcoin accumulation.
3. Share Performance and Bitcoin Treasury
STRC shares jumped back toward their $100 par value following a 9.39% surge in MicroStrategy’s stock, signaling investor confidence in continued Bitcoin buys. Strategy’s treasury now holds 815,061 BTC, valued at roughly $63.38 billion, underpinning the company’s long-term digital asset strategy.