Bitcoin Advocate Criticizes Strategy’s BTC Accumulation Plan as Financial Engineering

Susie Ward, chief executive officer of Bitcoin Policy UK, voiced concern over Strategy’s aggressive Bitcoin accumulation strategy.

The Block reported on June 15 that Ward, speaking in an interview at the recent BTC Prague event, said Strategy’s STRC preferred stock product and broader Bitcoin treasury strategy do not adequately explain the risks to investors.

“What makes me uncomfortable is the risk,” Ward said. “Michael Saylor released a video promoting the STRC yield, and he explained it as if there were no risk at all. I found that very dishonest.”

STRC is a perpetual preferred stock offering an 11.25% annual dividend, and Strategy is using proceeds from the sale to buy Bitcoin. Ward argued that the problem lies in the model itself: raising money in capital markets to fund additional Bitcoin purchases.

She also criticized the increasingly popular Bitcoin treasury strategy. Holding part of a company’s excess cash in Bitcoin is understandable, Ward said, but borrowing or issuing new shares to buy the token is excessively risky.

“Issuing additional shares, selling them to raise funds and then buying Bitcoin ultimately dilutes existing shareholders,” she said. “Bitcoin’s core value is its scarcity and its resistance to supply expansion. This kind of financial engineering runs counter to that philosophy.”

Ward also pointed to the number of companies that shifted to digital-asset treasury businesses after Bitcoin surged last year by following Strategy’s model. “They are using Bitcoin’s reputation to play fiat-based financial games,” she said. “Some projects do not look much different from memecoins or pump-and-dump schemes.”

Strategy has continued to add to its Bitcoin holdings. The company said on June 15 that it bought 1,587 Bitcoin for about $100 million at an average price of $63,024 each, bringing its total holdings to 846,842 BTC.