Peter Schiff Slams Saylor Ahead of STRC Dividend Vote... "What Will You Sell Next?"

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

As MicroStrategy faces a vote on changing the STRC dividend frequency, Peter Schiff directly targeted the risk of cash depletion, once again attacking Michael Saylor's Bitcoin acquisition structure.

According to BeInCrypto on May 27 (local time), Michael Saylor urged STRC shareholders to vote on a proposal to change the preferred stock dividend payment frequency from once a month to twice a month. The voting deadline has been set for June 8, and the proposed change involves maintaining an annual yield of 11.5% while doubling the payment frequency.

MicroStrategy explained that changing the dividend frequency could reduce reinvestment delays, increase market efficiency, and support the price stability of STRC near its $100 par value. The proposal requires approval from both MSTR and STRC holders to pass. If approved, the first record date for the changed schedule will be June 30.

Saylor presented this change as a measure that provides substantial benefits to individual investors. He explained that approximately 80% of STRC holders are individual investors, meaning that an increased dividend frequency directly impacts the cash flow management of the majority of holders. MicroStrategy has maintained the STRC rate at 11.5% since April, and this vote is separate from the interest rate adjustment procedure decided by the board of directors.

Peter Schiff questioned MicroStrategy's liquidity structure. Schiff claimed that MicroStrategy raises cash by selling STRC shares, uses those funds to buy Bitcoin (BTC), and because Bitcoin does not generate cash flow, MicroStrategy relies on issuing new shares again for the next dividend payment. Schiff stated, “You are running out of cash. What will you sell next to keep the wheels from falling off?”

Schiff's criticism intensified after MicroStrategy recently used its cash reserves to repay debt. MicroStrategy spent $1.38 billion to repurchase $1.5 billion in convertible notes due 2029 at an 8% discount. As a result, its dollar reserves decreased from approximately $2 billion before the transaction to about $871 million. Saylor admitted during the Q1 2026 earnings call that he might sell Bitcoin to pay dividends if other capital-raising methods become insufficient, and Schiff cited this statement as evidence supporting his concerns.

MicroStrategy halted Bitcoin purchases for one week during the repurchase settlement period but acquired an additional 24,869 BTC using proceeds from STRC and stock issuance during the same period. MicroStrategy's total holdings currently stand at 843,738 BTC. BeInCrypto reported that the STRC holder vote on June 8 will serve as a gauge of investor confidence in the yield model that Schiff has been questioning for months.

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