TLDR
- Peter Schiff labeled Strategy’s STRC perpetual preferred stock the “most obvious Ponzi that has ever existed”
- Schiff also attacked the SEC for allowing Michael Saylor to promote STRC
- STRC offers an 11.5% annual dividend, paid monthly, used to fund Bitcoin purchases
- STRC stock traded near its $100 par value; MSTR rose 9.39% to $179.36 on Wednesday
- Strategy holds 815,061 Bitcoin worth around $63.38 billion
Peter Schiff, a longtime Bitcoin critic, escalated his public feud with Strategy’s Michael Saylor on April 23, calling the company’s STRC perpetual preferred stock “the most obvious Ponzi that has ever existed.”
Schiff made the comments in an X post, arguing that investors buying STRC are chasing the 11.5% annual dividend rather than gaining real Bitcoin exposure.
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
Strategy sells STRC shares to raise cash, which it then uses to buy more Bitcoin. The stock pays dividends monthly, recently changed to semi-monthly payouts.
Schiff’s argument is that this structure is circular — the company relies on new investor money to keep buying Bitcoin, which in turn supports the stock price and the ability to keep paying dividends.
He also took aim at the U.S. Securities and Exchange Commission, saying its failure to stop Saylor from promoting STRC was “proof that we don’t need an SEC.”
Schiff hosted two X Spaces and invited critics, including online fraud investigator Coffeezilla, to join and prove him wrong. He specifically named Saylor as someone he wanted to participate.
Last week, Schiff warned that Saylor could face lawsuits when STRC dividends are eventually canceled and the stock falls, calling the promotion “so misleading as to constitute fraud.”
Strategy Defends Its Model
Not everyone agrees with Schiff. Strive CEO Matt Cole called STRC “a clear multi-trillion dollar idea,” saying it is a better product than private credit in almost every way.
Strategy recently declared STRC “the world’s largest preferred stock.” To date, STRC has accumulated 17,204.73 Bitcoin of its own.
Strategy’s most recent Bitcoin purchase was on April 20, when it added 34,164 Bitcoin to its holdings.
Market Reaction
STRC closed at $99.44 on Wednesday, up 0.15%, with trading volume of 2.66 million — above its average of 2.4 million.
MSTR stock closed up 9.39% at $179.36 on Wednesday. The move came as Bitcoin climbed above $79,000 after President Trump said U.S.-Iran peace talks would resume.
TD Cowen analyst Lance Vitanza reiterated a buy rating on MSTR and kept his price target at $385. He said the semi-monthly dividend structure creates a funding loop for continued Bitcoin buying.
Bitcoin was trading around $77,900 at the time of writing, with a 24-hour range of $77,456 to $79,468.
Strategy remains the largest public Bitcoin treasury company, holding 815,061 Bitcoin worth approximately $63.38 billion.
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