Peter Schiff Calls Strategy’s STRC a Ponzi Structure Bound to Collapse

Peter Schiff, one of Bitcoin’s best-known skeptics, blasted Strategy’s preferred stock product STRC and questioned the sustainability of the company’s Bitcoin investment model.

BeInCrypto reported on May 6 that Euro Pacific Capital Chief Executive Officer Peter Schiff described STRC as “a Ponzi scheme” that would collapse once dividend payments stop.

Schiff said Strategy would eventually reach a point where it could no longer keep paying dividends on STRC.

At that stage, Michael Saylor would have to choose between selling assets and diluting preferred shareholders, he added.

Schiff also argued that the structure would ultimately collapse and called Bitcoin itself “a hybrid fraud.”

Debate in the market continues over STRC’s structure and whether Strategy can sustain its Bitcoin accumulation strategy. Bitcoin’s price moves and fundraising conditions remain the main variables.