Peter Schiff says MicroStrategy’s STRC is a ‘Ponzi’

Peter Schiff intensified his criticism of MicroStrategy on May 6, 2026, calling the company’s STRC preferred shares a “pure Ponzi” and warning that CEO Michael Saylor might suspend STRC dividends rather than sell Bitcoin to cover payouts.

Saylor had written on X that MicroStrategy would sell Bitcoin if necessary to fund STRC dividend payments. Schiff responded that such public pledges can help sustain confidence in the preferred structure but predicted they may not hold when dividend obligations become unsustainable.

MicroStrategy reported a sharp loss in first-quarter 2026 results. The company has issued multiple preferred share series in recent years; each series carries recurring dividend commitments that rely in part on the firm’s ability to raise new capital or to use corporate resources to meet payouts.

Critics of the preferred stack warn that a suspended dividend could trigger steep repricing across classes and undermine confidence in treasury models that rely on large Bitcoin reserves. Market observers are watching whether the firm would sell digital assets, use cash reserves or suspend payouts if funding pressures increase.

Schiff wrote on X: “Yesterday @Saylor admitted that $MSTR would sell Bitcoin if needed to pay the dividend on $STRC. I think that type of ‘commitment’ is needed to keep the Ponzi going longer. But my guess is when the time comes, he’d suspend the dividend and crash $STRC rather than crash Bitcoin.”

The coming quarters of financial results and any corporate actions on dividends or asset sales will determine whether Saylor’s pledge to defend STRC payouts holds. If dividends are suspended, investors in lower-priority preferred shares could face significant losses.