Noted Skeptic Peter Schiff Slams Bitcoin, Urging Regulators to Crack Down on Alleged Investment Scheme
Bitcoin critic Peter Schiff has intensified his criticism of Strategy’s $STRC perpetual preferred stock, calling it an “obvious Ponzi” scheme and questioning the role of U.S. regulators. His remarks come as the stock shows signs of recovery toward its $100 par value, coinciding with a 9.39% rise in MSTR shares on Wednesday and renewed analyst optimism around the company’s outlook.
Schiff’s latest comments add to a long-running dispute with Strategy executive chairman Michael Saylor. In a post on X, Schiff argued that STRC’s structure relies heavily on attracting investors through its advertised 11.5% annual dividend, which is distributed monthly. According to him, the yield component is driving investor interest more than Bitcoin exposure.
He stated that while some investment risks may not be immediately apparent, $STRC stands out as a case he considers unusually clear. Schiff also criticized the U.S. Securities and Exchange Commission, asserting that the regulator has allowed continued promotion of the product without intervention. He further hosted two discussions on X Spaces, inviting participants to counter his claims.
Sometimes a Ponzi scheme is not obvious. The only sign may be that it seems too good to be true. But that is not the case with $STRC, which is the most obvious Ponzi that has ever existed. The fact that the SEC allows @Saylor to promote it is more proof that we don't need an SEC.
— Peter Schiff (@PeterSchiff) April 22, 2026
Concerns Over Funding Model and Dilution Risk
In addition to his critique of $STRC, Schiff has raised concerns about Strategy’s broader capital strategy tied to Bitcoin accumulation. He noted that the company has shifted from issuing common stock at a premium to relying more on higher-cost instruments, such as preferred shares, which offer elevated yields.
Related: Peter Schiff Warns Bitcoin ‘Collapse Is Inevitable’ as Strategy Buys $2.54B More $BTC
According to Schiff, the company’s software business does not generate sufficient earnings to support these financial obligations. He outlined a scenario in which the firm may need to issue additional preferred shares, sell discounted equity, or liquidate Bitcoin holdings to meet dividend commitments. He indicated that such actions could result in shareholder dilution or pressure on the company’s balance sheet.
Schiff previously warned of potential legal consequences if $STRC dividends are reduced or discontinued and the stock price declines. His position has also been echoed by Canadian investor Frank Giustra, who described the debt-driven Bitcoin acquisition strategy as vulnerable under broader economic stress.
Related: Schiff Warns Strategy $BTC Model Could Trigger Fraud Lawsuits