Peter Schiff Targets Strategy Again As STRC Debate Gets Hotter

Schiff Renews His STRC Attack

Peter Schiff has escalated his criticism of Strategy again, turning the focus back to STRC and the company’s expanding Bitcoin-backed capital stack.

In a May 3 post on X, Schiff pushed back against Strategy CEO Phong Le’s defense that the STRC structure is transparent and clear to investors. Schiff argued that transparency does not answer his core objection, because his criticism is not that Strategy hides the mechanism. His claim is that the structure is openly dependent on continued investor demand, Bitcoin appreciation, and the company’s ability to keep servicing preferred-stock payouts.

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.

The latest exchange extends a broader fight around Strategy’s funding model. The company has turned MSTR common stock, preferred securities, and Bitcoin accumulation into a single capital-markets machine. Supporters view that structure as an aggressive way to transform public-market demand into long-term BTC exposure. Critics argue that the model becomes harder to sustain if Bitcoin stalls, STRC trades below its stated amount, or investors demand more compensation for balance-sheet risk.

STRC’s 11.5% Yield Keeps Pressure On The Model

The immediate pressure point is STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock. Strategy recently maintained the STRC dividend rate at 11.50% for May, according to the company’s May 1 Form 8-K. That high cash yield has helped attract a different investor base from MSTR common shares, but it also gives critics a simple question: how does the company keep the payout structure healthy if Bitcoin does not rise fast enough?

That debate has already been building across the market. A recent MSTR and STRC breakdown framed the two securities as very different ways to express the same underlying Bitcoin treasury trade. MSTR gives investors amplified upside and downside through common equity, while STRC gives income-focused investors yield exposure tied to Strategy’s ability to maintain confidence in its broader capital stack.

Strategy has also asked holders to approve a move toward semi-monthly STRC dividends. A recent STRC liquidity update placed that proposal inside a wider effort to keep STRC trading closer to par, improve liquidity, and reduce reinvestment lag.

Bitcoin Buying Pause Adds Timing Risk

The criticism landed as Michael Saylor indicated that Strategy made no Bitcoin purchases this week, after the firm’s latest disclosed acquisition took holdings to 818,334 BTC. Strategy’s official April 27 purchase update placed the latest buy at 3,273 BTC for about $255 million, with total holdings acquired for roughly $61.81 billion at an average cost near $75,537 per Bitcoin.

A skipped weekly purchase does not mean Strategy has changed its long-term Bitcoin plan. The company still positions itself as the largest Bitcoin treasury company, with a model built around equity and fixed-income instruments that give investors different forms of economic exposure to BTC. The pause does, however, arrive at a sensitive moment because STRC scrutiny, dividend obligations, earnings timing, and Bitcoin’s price level are now part of the same market conversation.