Peter Schiff Calls MicroStrategy’s STRC a Ponzi Scheme Amid Bitcoin Debate

Peter Schiff has intensified his criticism of MicroStrategy and its preferred stock offering, STRC, describing the structure as a “pure Ponzi scheme” tied to Bitcoin. The longtime gold advocate argued that the company’s growing dependence on fresh capital and dividend obligations could eventually lead to financial instability.

Schiff’s latest comments came after MicroStrategy chairman Michael Saylor acknowledged that the company could sell part of its Bitcoin reserves if needed to maintain STRC dividend payments. According to Schiff, that public commitment is designed to preserve investor confidence and extend the lifespan of the strategy.

Despite Saylor’s pledge, Schiff believes the company would avoid selling Bitcoin reserves at all costs. Instead, he predicts MicroStrategy would suspend STRC dividend payments and allow the preferred shares to collapse rather than risk putting pressure on Bitcoin holdings.

“I think that type of commitment is needed to keep the Ponzi going longer,” Schiff wrote on X, adding that Saylor would likely “suspend the dividend and crash STRC rather than crash Bitcoin.”

The debate intensified after Strategy posted a major loss in its Q1 2026 earnings report, raising concerns about how the company plans to support dividend payouts tied to its expanding preferred share offerings. Over the past several years, MicroStrategy has introduced multiple preferred stock classes, each carrying recurring financial obligations.

Critics argue that the company’s treasury strategy relies heavily on continuous capital inflows and rising Bitcoin prices. They warn that any interruption in dividend payments could trigger a sharp decline in investor confidence and impact other firms adopting similar Bitcoin treasury models.

Schiff has repeatedly attacked MicroStrategy’s Bitcoin accumulation strategy, claiming it disproportionately benefits early investors while exposing newer shareholders to greater risk. Supporters of Saylor, however, continue to view Bitcoin as a long-term store of value and believe the company’s aggressive approach could pay off if crypto markets continue to strengthen through 2026.