Peter Schiff Says Saylor Could Face Civil Liability Over STRC Losses
Summary
- Peter Schiff said Michael Saylor misled investors in connection with the plunge in STRC and could face civil liability if investors suffer substantial losses.
- Schiff also warned that STRC has problems in its structure and sales process and is akin to a Ponzi scheme, meaning its price could plunge if market demand weakens.
- Some Wall Street analysts said STRC’s weakness amounts to a structural price adjustment and that it would be excessive to read it as a sign of financial distress.
Forecast Trend Report by Period
Bitcoin skeptic Peter Schiff criticized Strategy founder Michael Saylor over the sharp decline in the company’s perpetual preferred stock, STRC.
In a post on X, formerly Twitter, on June 18, Schiff wrote that Saylor had misled investors and could face civil liability if they suffer substantial losses.
He argued that STRC’s structure and the way it was sold were flawed.
Schiff had previously said STRC was akin to a Ponzi scheme and warned that its price could plunge if market demand weakens.
STRC recently fell to a record low and has remained under pressure. Some Wall Street analysts, however, have described the weakness as a structural price adjustment and said it would be excessive to interpret it as a sign of financial distress.
The drop in STRC has fueled debate over Strategy’s financial health and the structure of its preferred shares.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
