Peter Schiff Again Slams Strategy as 'Ponzi'..."$64 Billion Bet in the Red?"

▲ Michael Saylor, Strategy (MSTR)/ChatGPT generated image

Bitcoin (BTC) skeptic Peter Schiff has once again targeted Strategy's (MicroStrategy's) Bitcoin accumulation strategy. Schiff claimed that although Strategy has invested approximately $64 billion in Bitcoin purchases over five years, its total return as of May 23 is negative.

BeInCrypto reported on May 23 (local time) that Schiff strongly criticized Strategy and the STRC preferred stock structure via X (formerly Twitter). Schiff argued that Bitcoin would need to rise by approximately 30% annually for STRC to pay an annual dividend of 11.5%. He described the STRC structure as a “Ponzi” scheme, pointing out that it relies on expectations of rising Bitcoin prices.

The STRC dividend rate is set at 11.50% as of March 2026. This dividend rate has been raised for seven consecutive months since STRC was launched in July 2025. According to BeInCrypto, the dividend rate is adjusted monthly to keep the STRC stock price near its par value of $100.

Schiff's criticism focused on the sustainability of STRC's dividend obligations. He argued that for the 11.5% annual dividend to be maintained, Bitcoin would need to compound at a rate significantly exceeding historical averages. He also pointed out that as STRC issuance continues to increase, the number of shares circulating in the market each month grows, thereby raising the required return threshold.

One commenter countered that Strategy's Bitcoin holdings significantly exceed its dividend obligations, and payments could be covered with a compound annual growth rate of just 2.5%. Schiff retorted, “They haven’t even earned 2.5% per year, let alone over five years. Furthermore, MSTR continues to issue more STRC. So the 2.5% hurdle gets higher every week.”

According to the article, another market participant pointed out that the core issue is not Strategy's lack of disclosure but rather retail investors' inadequate understanding of the volatility of leveraged Bitcoin proxy investment products. Michael Saylor had previously compared Strategy's long-term stock performance to traditional assets and demanded that Schiff publicly defend his claims.

Strategy holds 818,869 BTC at an average purchase price of approximately $75,540. As Bitcoin traded around $76,800 on May 23, these holdings remained slightly above the average purchase price. Strategy's Bitcoin acquisition strategy continues, and Saylor has not yet acknowledged any structural limitations to this approach.

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