Key Points
- Gold advocate Peter Schiff branded Strategy’s STRC perpetual preferred shares as “the most obvious Ponzi that has ever existed”
- The economist criticized the Securities and Exchange Commission for permitting Michael Saylor to market STRC
- The STRC instrument delivers an 11.5% yearly dividend, distributed monthly, to finance Bitcoin acquisitions
- STRC shares hovered around their $100 par value; MSTR climbed 9.39% to reach $179.36 on Wednesday’s session
- The company maintains a treasury of 815,061 Bitcoin valued at roughly $63.38 billion
Renowned Bitcoin skeptic Peter Schiff intensified his ongoing dispute with Strategy’s chairman Michael Saylor on April 23, branding the firm’s STRC perpetual preferred shares as “the most obvious Ponzi that has ever existed.”
The economist delivered these sharp criticisms through a post on X, contending that STRC purchasers are primarily motivated by the 11.5% yearly dividend yield instead of obtaining genuine Bitcoin investment exposure.
Sometimes a Ponzi scheme is not obvious. The only sign may be that it seems too good to be true. But that is not the case with $STRC, which is the most obvious Ponzi that has ever existed. The fact that the SEC allows @Saylor to promote it is more proof that we don’t need an SEC.
— Peter Schiff (@PeterSchiff) April 22, 2026
The business model involves Strategy issuing STRC shares to generate capital, subsequently deploying those funds to acquire additional Bitcoin. These shares distribute dividends on a monthly basis, with a recent shift to twice-monthly distributions.
Schiff’s central critique targets the cyclical nature of this framework — the enterprise depends on continuous influx of fresh investor capital to sustain Bitcoin purchases, which subsequently props up the share price and maintains dividend payment capacity.
The financial commentator also directed criticism toward the Securities and Exchange Commission, asserting that the regulator’s inability to prevent Saylor from marketing STRC demonstrates “proof that we don’t need an SEC.”
Schiff organized two discussion forums on X Spaces, extending invitations to detractors, including digital fraud investigator Coffeezilla, challenging them to refute his position. He explicitly mentioned Saylor as a desired participant.
In previous statements last week, Schiff cautioned that Saylor might encounter legal action when STRC dividend payments are ultimately suspended and share values decline, characterizing the promotional efforts as “so misleading as to constitute fraud.”
Company Stands Behind Its Strategy
Schiff’s perspective isn’t universally shared. Strive’s CEO Matt Cole characterized STRC as “a clear multi-trillion dollar idea,” asserting it represents a superior alternative to private credit across nearly all metrics.
Strategy has publicly proclaimed STRC as “the world’s largest preferred stock.” The STRC vehicle has independently amassed 17,204.73 Bitcoin through its operations.
The company’s latest Bitcoin purchase occurred on April 20, adding 34,164 Bitcoin to its expanding reserves.
Trading Activity
STRC concluded Wednesday’s trading session at $99.44, registering a modest 0.15% increase, with transaction volume reaching 2.66 million shares — surpassing the typical 2.4 million average.
MSTR shares finished Wednesday’s session with a substantial 9.39% gain at $179.36. This upward movement coincided with Bitcoin’s surge above $79,000 following President Trump’s announcement regarding the resumption of peace negotiations between the United States and Iran.
TD Cowen’s equity analyst Lance Vitanza maintained his buy recommendation on MSTR shares while preserving his $385 price objective. He highlighted that the twice-monthly dividend mechanism establishes a self-reinforcing funding cycle supporting ongoing Bitcoin accumulation.
Bitcoin was changing hands around $77,900 at press time, with its 24-hour trading range spanning from $77,456 to $79,468.
Strategy maintains its position as the dominant publicly-traded Bitcoin treasury corporation, controlling 815,061 Bitcoin with an approximate market value of $63.38 billion.
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