Peter Schiff calls the Strategy STRC a Ponzi scheme, criticizing the SEC for inadequate regulation

Bitcoin critic and gold supporter Peter Schiff posted on X on April 23, calling the STRC perpetual preferred stock launched by Strategy the “most obvious Ponzi scheme to date,” and criticizing the U.S. Securities and Exchange Commission (SEC) for failing to effectively stop Michael Saylor’s promotion of STRC.

Peter Schiff: Strategy perpetual preferred stock is a “Ponzi scheme”

According to a post published by Peter Schiff on X on April 23, Schiff directly quoted: “Sometimes a Ponzi scheme isn’t obvious. The only clue might be that it looks too good to be true. But STRC isn’t like that—it’s the most obvious Ponzi scheme to date.”

In the same post, Schiff said: “This further proves we don’t need the U.S. Securities and Exchange Commission.” Schiff also hosted two X Spaces events, inviting followers to challenge the above viewpoints.

Based on Schiff’s prior public statements, he warned Michael Saylor that if STRC’s dividends were canceled and the share price fell, Saylor could face lawsuits, and he said STRC’s related disclosures for Bitcoin purchases were “highly misleading and constitute fraud.”

STRC product structure and Strategy holdings data

According to Strategy’s official documents, STRC (Stretch perpetual preferred stock) pays an annualized preferred dividend of about 11.5% every month. Strategy raises funds by selling shares of STRC stock, which it uses to buy Bitcoin. Based on the latest disclosed figures, Strategy holds 815,061 Bitcoins, with a current value of about $63.38 billion.

In a public statement, Strive CEO Matt Cole said: “Digital credit and STRC are obviously a $trillion-value project. In nearly every respect, it outperforms private credit.”

Market trading data and analysts’ assessments

Based on market trading data, MSTR shares rose 9.39% on Wednesday to close at $179.36. The intraday trading range was $174.55 to $183.25. STRC shares rose 0.15% on Wednesday to close at $99.44, with trading volume of 2.66 million shares, higher than the 2.4 million-share average daily volume; after-hours trading climbed further to $99.50.

TD Cowen analyst Lance Vitanza reiterated his Buy rating for MSTR on Wednesday, keeping the target price unchanged at $385, and said that the bi-monthly dividend plan proposed by STRC will create a funding circulation that supports Strategy’s continued accumulation of Bitcoin.

According to trading data, Bitcoin was about $77,900 as of the time of publication, with a 24-hour trading range of $77,456 to $79,468.

Frequently Asked Questions

When and through what channel did Peter Schiff criticize Strategy’s STRC?

According to a post by Peter Schiff on X on April 23, Schiff called STRC perpetual preferred stock the “most obvious Ponzi scheme to date” and criticized the SEC for not effectively stopping Michael Saylor from promoting STRC. At the same time, he hosted two X Spaces events to invite followers to rebut his views.

What are the main product features of STRC perpetual preferred stock?

According to Strategy’s official documents, STRC is a perpetual preferred stock that pays an annualized preferred dividend of about 11.5% each month. Strategy raises funds by selling shares of STRC stock to buy Bitcoin. Based on the latest data, Strategy holds 815,061 Bitcoins, with a current value of about $63.38 billion.

What rating and target price did TD Cowen’s analyst maintain for MSTR?

According to TD Cowen analyst Lance Vitanza’s assessment report on Wednesday, he reiterated his Buy rating for MSTR and maintained the target price at $385. He also said that STRC’s bi-monthly dividend mechanism helps support a funding cycle that enables Strategy to continue accumulating Bitcoin.