Key Takeaways
- Bitcoin skeptic Peter Schiff branded Strategy’s STRC perpetual preferred offering as “the most obvious Ponzi that has ever existed”
- Schiff criticized the Securities and Exchange Commission for permitting Michael Saylor’s promotion of the STRC security
- The STRC instrument delivers an 11.5% yearly dividend, distributed monthly, to finance additional Bitcoin acquisitions
- STRC shares hovered close to their $100 par value; MSTR stock jumped 9.39% to reach $179.36 during Wednesday’s session
- The company maintains a treasury of 815,061 Bitcoin valued at roughly $63.38 billion
Gold advocate and persistent Bitcoin detractor Peter Schiff intensified his ongoing dispute with Strategy’s executive chairman Michael Saylor on April 23, characterizing the firm’s STRC perpetual preferred security as “the most obvious Ponzi that has ever existed.”
The harsh criticism emerged through a social media post on X, where Schiff contended that STRC purchasers are primarily motivated by the 11.5% yearly dividend payments instead of obtaining genuine exposure to Bitcoin’s price movements.
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 securities to generate capital, subsequently deploying those proceeds to acquire additional Bitcoin. Dividend distributions occur monthly, with the company recently transitioning to a semi-monthly payment schedule.
According to Schiff’s critique, this framework represents a self-perpetuating cycle — the enterprise depends on fresh capital inflows to maintain its Bitcoin accumulation strategy, which subsequently props up the stock valuation and sustains the dividend payment capacity.
The economist also directed criticism toward the Securities and Exchange Commission, asserting that the regulator’s inaction regarding Saylor’s promotional activities surrounding STRC demonstrated “proof that we don’t need an SEC.”
Schiff organized two X Spaces discussions, extending invitations to detractors including internet fraud analyst Coffeezilla to participate and challenge his assertions. He explicitly mentioned Saylor as a desired participant in the debate.
In a previous statement last week, Schiff predicted that Saylor could become vulnerable to litigation once STRC dividend payments cease and share prices decline, characterizing the promotional messaging as “so misleading as to constitute fraud.”
Company Stands Behind Its Business Approach
Schiff’s perspective hasn’t achieved universal acceptance. Strive Asset Management CEO Matt Cole characterized STRC as “a clear multi-trillion dollar idea,” asserting it represents a superior alternative to private credit instruments across nearly all evaluation criteria.
Strategy recently proclaimed STRC “the world’s largest preferred stock.” The STRC treasury itself has grown to include 17,204.73 Bitcoin through its operations.
The company’s latest Bitcoin purchase occurred on April 20, when management acquired 34,164 Bitcoin for the corporate treasury.
Trading Activity and Price Movement
STRC concluded Wednesday’s trading session at $99.44, registering a 0.15% gain, while transaction volume reached 2.66 million shares — exceeding the typical average of 2.4 million.
MSTR shares finished Wednesday’s session with a robust 9.39% advance to $179.36. The upward momentum coincided with Bitcoin’s rally above $79,000 following President Trump’s announcement that diplomatic discussions with Iran would recommence.
TD Cowen analyst Lance Vitanza maintained his buy recommendation on MSTR shares while preserving his $385 price objective. His analysis suggested the semi-monthly distribution framework establishes a continuous funding mechanism for ongoing Bitcoin accumulation.
At publication time, Bitcoin traded around $77,900, fluctuating within a 24-hour band spanning $77,456 to $79,468.
Strategy maintains its position as the world’s dominant publicly-traded Bitcoin treasury operation, controlling 815,061 Bitcoin with an approximate market value of $63.38 billion.
