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Peter Schiff Calls Strategy's Preferred Stock 'Most Obvious' Ponzi Scheme Because The Michael Saylor-Led Company Is 'Open' About It

finance.yahoo.com · Tue, May 5, 2026 at 5:46 PM GMT+8

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Renowned investor Peter Schiff on Sunday doubled down on his statement about Strategy Inc.‘s preferred stock being “the most obvious” Ponzi scheme.

In an X post, Schiff likely referenced Strategy CEO Phong Le’s interview on the Paul Barron show dated April 24, where he defended the firm’s Perpetual Stretch Preferred Stock offering as “transparent.”

“We are taking the proceeds of Stretch and putting it into Bitcoin, right? It’s not like we’re taking the proceeds, and we’re then using those proceeds to pay out dividends,” Le said. “So, it’s very clear what we’re doing with the proceeds.”

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However, the response failed to impress Schiff.

“But I never accused Strategy of hiding the scheme. In contrast, I called STRC the most obvious Ponzi precisely because MSTR is so open about it,” Schiff said.

Strategy didn’t immediately return Benzinga’s request for comment.

Strategy CEO @phongle refuted my claim that $STRC is a Ponzi scheme by arguing it's "transparent" and "very clear what we're doing." But I never accused Strategy of hiding the scheme. In contrast, I called STRC the most obvious Ponzi precisely because $MSTR is so open about it.

— Peter Schiff (@PeterSchiff) May 3, 2026

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Strategy introduced the STRC preferred stock last year to provide a high-yield, lower-volatility income instrument. The proceeds are used to acquire more Bitcoin. STRC has swelled to an $8.5 billion market cap since its IPO, making it the world's largest preferred equity by market capitalization.

Strategy pays roughly $85 million monthly in cash dividends to STRC holders by issuing common stock and using those proceeds to fund the payouts.

Schiff, on the other hand, has consistently questioned how the company could sustain the 11% dividend payout on the stock, noting the company’s persistent financial troubles in the Bitcoin bear market.

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As of today, Strategy holds 818,334 BTC, representing roughly 3.9% of Bitcoin’s total supply. Its position remains profitable—for now—but risks turning red if BTC dips below $75,000.

Moreover, Strategy’s market capitalization stood at $62 billion, compared to $65.42 billion in BTC holdings. This means that the stock is trading at a discount to its net asset value.

Meanwhile, Strategy paused its weekly Bitcoin acquisition ahead of the release of its first-quarter financials, with Strategy CEO Michael Saylor saying, “No buys this week. Back to work next week.”

No buys this week. Back to work next week. $BTC pic.twitter.com/lqliYZPAf4

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