Schiff Slams MicroStrategy Again Amid Rising Leverage Concerns
Peter Schiff is renewing his assault on MicroStrategy (MSTR), arguing the corporate’s five-year Bitcoin accumulation technique has produced a unfavorable whole return and that its STRC most popular inventory construction will depend on value appreciation that has not materialized.
Schiff posted on X that MSTR has deployed roughly $64 billion into Bitcoin (BTC) since adopting its treasury technique. The place’s whole return stays unfavorable as of May 23, he argued. He added that your complete STRC framework will depend on bitcoin appreciating roughly 30% per yr to fund its 11.5% annual dividend.
STRC’s Yield Math Under the Microscope
Strategy set its STRC dividend rate at 11.50% for March 2026, the seventh consecutive month-to-month improve since the popular shares launched in July 2025. The fee is adjusted month-to-month to maintain STRC shares buying and selling close to their $100 par worth.
Schiff’s critique facilities on the sustainability of that obligation. He contends that overlaying an 11.5% annual payout requires Bitcoin to compound at a fee far above historic averages.
He additionally notes that ongoing STRC issuance raises that threshold every month as extra shares enter the float.
Schiff has previously labeled MSTR a Ponzi scheme, arguing the construction is self-reinforcing on the draw back. Under that studying, weak bitcoin efficiency reduces MSTR’s potential to challenge new shares at a premium, limiting the capital obtainable to fund dividends.
“Well it hasn’t even managed to earn 2.5% but, even over 5 years, not to mention yearly for 5 years. Plus MSTR retains issuing extra STRC. So that 2.5% hurdle fee will get greater each week,” Schiff mentioned.
Pushback From the Thread
Not all observers settle for the framing. One commenter argued that MSTR’s bitcoin holdings far exceed its dividend obligations and {that a} 2.5% compound annual progress fee can be enough to cowl funds.
Schiff rejected that determine, noting that bitcoin has not even reached that modest threshold since MSTR started accumulating.
A separate participant raised a unique challenge, arguing the true drawback is retail traders failing to understand the volatility of a leveraged bitcoin proxy quite than any lack of disclosure.
Saylor has publicly challenged Schiff to defend his place, citing MSTR’s long-run value efficiency relative to conventional belongings.
Strategy holds 818,869 BTC at a median price of roughly $75,540 per coin. With bitcoin buying and selling close to $76,800 on May 23, the place sits solely marginally above its price foundation.
Whether that margin justifies Schiff’s death-spiral warning or indicators a brief trough will rely upon bitcoin’s trajectory. Strategy’s MSTR Bitcoin acquisitions proceed, with Saylor but to acknowledge any structural restrict to the method.
The submit Schiff Slams MicroStrategy Again Amid Rising Leverage Concerns appeared first on BeInCrypto.
