Peter Schiff Calls Strategy's Preferred Stock 'Most Obvious' Ponzi Scheme Because The Michael Saylor-Led Company Is 'Open' About It

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Renowned investor Peter Schiff on Sunday doubled down connected his connection astir Strategy Inc.‘s preferred banal being “the astir obvious” Ponzi scheme.

Schiff’s Jibe At Strategy CEO’s Defense

In an X post, Schiff apt referenced Strategy CEO Phong Le’s interview connected the Paul Barron amusement dated April 24, wherever helium defended the firm’s Perpetual Stretch Preferred Stock offering arsenic “transparent.”

“We are taking the proceeds of Stretch and putting it into Bitcoin, right? It’s not similar we’re taking the proceeds, and we’re past utilizing those proceeds to wage retired dividends,” Le said. “So, it’s precise wide what we’re doing with the proceeds.”

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However, the effect failed to impressment Schiff.

“But I ne'er accused Strategy of hiding the scheme. In contrast, I called STRC the astir evident Ponzi precisely due to the fact that MSTR is truthful unfastened astir it,” Schiff said.

Strategy didn’t instantly instrumentality Benzinga’s petition for comment.

Strategy CEO @phongle refuted my assertion that $STRC is simply a Ponzi strategy by arguing it's "transparent" and "very wide what we're doing." But I ne'er accused Strategy of hiding the scheme. In contrast, I called STRC the astir evident Ponzi precisely due to the fact that $MSTR is truthful unfastened astir it.

— Peter Schiff (@PeterSchiff) May 3, 2026

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Is STRC Really A Ponzi Scheme?

Strategy introduced the STRC preferred stock last twelvemonth to supply a high-yield, lower-volatility income instrument. The proceeds are used to get much Bitcoin. STRC has swelled to an $8.5 cardinal marketplace headdress since its IPO, making it the world's largest preferred equity by marketplace capitalization.

Strategy pays astir $85 cardinal monthly successful currency dividends to STRC holders by issuing communal banal and utilizing those proceeds to money the payouts.

Schiff, connected the different hand, has consistently questioned however the institution could prolong the 11% dividend payout connected the stock, noting the company’s persistent fiscal troubles successful the Bitcoin carnivore market.

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Strategy Pauses BTC Purchases

As of today, Strategy holds 818,334 BTC, representing astir 3.9% of Bitcoin’s full supply. Its presumption remains profitable—for now—but risks turning reddish if BTC dips beneath $75,000.

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