TLDR
- Peter Schiff called for the SEC to review Michael Saylor’s comments on STRC.
- Schiff said STRC carries risks for retirees seeking income and capital preservation.
- Saylor said Strategy may sell small BTC amounts while remaining a net buyer.
- Strategy recently bought 535 BTC for about $43M at $80,340 per coin.
- Strategy now holds 818,869 BTC bought for about $61.86B.
Peter Schiff has called for the U.S. Securities and Exchange Commission to examine public comments by Michael Saylor and Strategy, formerly MicroStrategy, over the company’s Bitcoin-backed preferred stock model and its promotion to income-focused investors.
Schiff, a long-time gold advocate and Bitcoin critic, argued that Strategy’s STRC preferred stock carries risks that he believes are not being properly reflected in public commentary. He said the SEC should review whether statements about STRC violate antifraud or marketing rules.
The dispute centers on Strategy’s use of perpetual preferred stock to raise capital, fund Bitcoin purchases and support dividend obligations. STRC, also known as Stretch, is structured as a preferred equity instrument that pays dividends and is designed to trade near par value.
How can the SEC let @Saylor get away with public comments that $STRC is suitable for retirees whose primary investment objectives are low-risk wealth preservation and income, and who don't want to risk losing principal? This is a violation of SEC antifraud and marketing rules.
— Peter Schiff (@PeterSchiff) May 11, 2026
Schiff said the product is being presented in a way that could appeal to retirees seeking income and capital preservation. He argued that STRC remains exposed to Bitcoin market risk and could create losses if Strategy suspends dividends or if investor demand weakens.
Peter Schiff Questions STRC Risk Profile
Schiff said on X that Saylor’s comments about STRC being used by retirees raised regulatory concerns. He argued that the product should not be treated as low-risk because its value is tied to Strategy’s Bitcoin-centered balance sheet and capital markets strategy.
He has repeatedly described Strategy’s structure as similar to a Ponzi model, saying the company depends on continued investor demand, new capital raises and Bitcoin price appreciation. Schiff has also argued that Bitcoin itself does not generate cash flow, making financial instruments built on top of it vulnerable if inflows slow.
His latest criticism followed Saylor’s recent remarks explaining that Strategy may sell small amounts of Bitcoin to fund STRC dividends or manage other obligations. Schiff said those comments could become relevant if STRC holders later face losses or missed payments.
The SEC has not announced any investigation into Saylor or Strategy related to STRC. Schiff’s remarks remain a public call for regulatory review, not confirmation of agency action.
Strategy has continued to defend its model. Saylor has said the company’s structure is not a financial pyramid and is instead a corporate treasury strategy built around Bitcoin as digital capital.
Michael Saylor Says Bitcoin Sales Would Be Tactical
Saylor recently explained that Strategy may sell limited amounts of Bitcoin when doing so supports shareholder value. He said the company would remain a net buyer of Bitcoin and would not reduce its long-term treasury position.
During an interview at Consensus Miami, Saylor said that if Strategy sold one Bitcoin, it could buy 10 to 20 more Bitcoin through its capital markets activity. He described potential sales as part of liquidity management rather than a retreat from the company’s accumulation plan.
Saylor also said Bitcoin gives Strategy access to liquidity outside traditional equity and debt markets. He argued that refusing to ever use Bitcoin as a liquid asset could weaken the company’s financial profile with credit rating agencies.
“If the market thought we would never sell it, the credit rating agencies would say, ‘Well, then I guess it’s not an asset,’” Saylor said during a podcast interview.
Strategy CEO Phong Le has also said the company would consider Bitcoin sales only when they are more accretive to shareholders than issuing additional stock.
The company’s position marks a shift from the simple “never sell” message often associated with Saylor. He has since clarified that his intended meaning is to avoid becoming a net seller of Bitcoin over time.
Strategy Adds More Bitcoin Despite Debate
Strategy continued buying Bitcoin after the recent comments. The company purchased 535 BTC for about $43 million between May 5 and May 11, 2026, at an average price of about $80,340 per coin.
That purchase increased Strategy’s total holdings to 818,869 BTC. The company acquired its Bitcoin at a total cost of about $61.86 billion, with an average cost basis near $75,540 per Bitcoin.
Strategy now holds about 3.9% of Bitcoin’s 21 million supply cap. The company reported a year-to-date BTC Yield of 9.4%, a metric it uses to track Bitcoin holdings relative to common shares.
The company has used common stock, convertible debt and preferred equity instruments to support its Bitcoin buying strategy. STRC has become a major part of that structure, with Saylor saying the product grew to about $8.5 billion in eight months.
Saylor has also said some decentralized finance platforms are tokenizing STRC into yield-related products. He described the broader digital yield market as being in a rapid growth phase.
