Schiff Calls MicroStrategy a Pure Ponzi and Bitcoin Hybrid Pyramid Scheme
Peter Schiff escalated his assault on MicroStrategy and its most well-liked share STRC, calling it a pure Ponzi scheme. He warned that the construction will finally collapse, whereas reinforcing his thesis that Bitcoin itself is a hybrid scheme.
The gold advocate mentioned MicroStrategy will face a second when STRC dividends grow to be unsustainable. Michael Saylor would then select between liquidating reserves or burning most well-liked shareholders.
Schiff Predicts Saylor Will Drop STRC Before Selling Reserves
Schiff responded to Saylor’s latest admission that MicroStrategy would sell holdings if essential to fund STRC dividend payouts. He mentioned the general public pledge helps keep confidence within the instrument.
Schiff mentioned Saylor will as an alternative droop the dividend and let STRC collapse somewhat than liquidate firm reserves. The forecast assumes Saylor locations the underlying asset above the popular share class.
“I feel that sort of ‘dedication’ is required to maintain the Ponzi going longer. But my guess is when the time comes, he’d droop the dividend and crash STRC somewhat than crash Bitcoin,” Schiff posted on X.
Strategy reported a sharp loss in its Q1 2026 outcomes. The figures intensified deal with how the agency funds dividends throughout its increasing most well-liked share stack.
The Saylor-led agency has issued a number of most well-liked courses in recent times. Each one carries recurring dividend commitments that rely upon Strategy’s means to maintain elevating recent capital.
Schiff has spent months labeling MSTR a scam. He has argued that the buildup mannequin rewards early holders on the expense of recent patrons.
The framing extends his long-running criticism of Strategy’s accumulation model. It additionally suits his repeated assaults on Saylor’s efficiency claims over a five-year window.
Critics of Strategy’s most well-liked stack warn that any suspended dividend would set off a steep repricing throughout the construction. They say it might stress broader confidence in treasury fashions constructed on the identical template.
The coming quarters will reveal whether or not Saylor’s pledge to defend STRC dividends holds up beneath macro stress. If it cracks, Schiff’s name about a suspended payout would land nearer to the mark.
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