Key Takeaways
- Gold advocate Peter Schiff branded Strategy’s STRC perpetual preferred shares as “the most obvious Ponzi that has ever existed”
- Schiff criticized the Securities and Exchange Commission for permitting Michael Saylor to market STRC
- The STRC offering provides an 11.5% yearly dividend with monthly distributions to finance Bitcoin acquisitions
- STRC shares hovered around their $100 par value while MSTR surged 9.39% to reach $179.36 on Wednesday
- Strategy currently maintains 815,061 Bitcoin valued at roughly $63.38 billion
Peter Schiff, who has consistently opposed Bitcoin for years, intensified his ongoing dispute with Strategy’s Michael Saylor on April 23, describing the firm’s STRC perpetual preferred shares as “the most obvious Ponzi that has ever existed.”
The controversial economist voiced these concerns through an X post, contending that STRC purchasers are motivated by the 11.5% yearly dividend payments instead of obtaining genuine Bitcoin market exposure.
Strategy issues STRC shares to generate capital, subsequently deploying those funds to acquire additional Bitcoin. The shares distribute dividends on a monthly basis, though the company recently transitioned to semi-monthly distribution schedules.
Schiff’s position is that this arrangement creates a circular dependency — the enterprise depends on fresh capital from incoming investors to maintain its Bitcoin purchasing activity, which subsequently props up the share price and enables continued dividend distributions.
He additionally criticized the U.S. Securities and Exchange Commission, asserting that the agency’s inability to prevent Saylor from marketing STRC demonstrates “proof that we don’t need an SEC.”
Schiff organized two X Spaces sessions and challenged detractors, including internet fraud analyst Coffeezilla, to participate and refute his claims. He explicitly mentioned Saylor as someone he hoped would engage in the discussion.
In previous commentary last week, Schiff cautioned that Saylor might face legal action when STRC dividend payments are ultimately suspended and share values decline, characterizing the marketing as “so misleading as to constitute fraud.”
Strategy Pushes Back Against Critics
Schiff’s perspective doesn’t have universal support. Strive CEO Matt Cole characterized STRC as “a clear multi-trillion dollar idea,” arguing it represents a superior alternative to private credit across nearly all dimensions.
Strategy recently proclaimed STRC as “the world’s largest preferred stock.” The STRC vehicle has independently accumulated 17,204.73 Bitcoin thus far.
Strategy’s latest Bitcoin purchase occurred on April 20, when the company acquired 34,164 Bitcoin for its treasury.
Trading Activity and Price Movement
STRC concluded Wednesday’s session at $99.44, registering a 0.15% increase, with trading volume reaching 2.66 million shares — exceeding its typical average of 2.4 million.
MSTR shares finished Wednesday’s trading up 9.39% at $179.36. The upward momentum coincided with Bitcoin advancing beyond $79,000 following President Trump’s announcement that diplomatic discussions with Iran would restart.
TD Cowen analyst Lance Vitanza maintained his buy recommendation on MSTR while preserving his $385 price objective. He noted that the semi-monthly dividend framework establishes a funding mechanism that facilitates ongoing Bitcoin accumulation.
Bitcoin was exchanging hands near $77,900 at press time, with a 24-hour trading range spanning $77,456 to $79,468.
Strategy continues to rank as the largest publicly-traded corporate Bitcoin holder, maintaining 815,061 Bitcoin with an approximate valuation of $63.38 billion.
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