Peter Schiff escalated his attack on MicroStrategy and its preferred share STRC, calling it a pure Ponzi scheme. He warned that the structure will eventually collapse, while reinforcing his thesis that Bitcoin itself is a hybrid scheme.

The gold advocate said MicroStrategy will face a moment when STRC dividends become unsustainable. Michael Saylor would then choose between liquidating reserves or burning preferred shareholders.

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.

Schiff responded to Saylor’s recent admission that MicroStrategy would sell holdings if necessary to fund STRC dividend payouts. He said the public pledge helps maintain confidence in the instrument.

Schiff said Saylor will instead suspend the dividend and let STRC collapse rather than liquidate company reserves. The forecast assumes Saylor places the underlying asset above the preferred share class.

“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,” Schiff posted on X.

Strategy reported a sharp loss in its Q1 2026 results. The figures intensified focus on how the firm finances dividends across its expanding preferred share stack.

The Saylor-led firm has issued multiple preferred classes in recent years. Each one carries recurring dividend commitments that depend on Strategy’s ability to keep raising fresh capital.

Schiff has spent months labeling MSTR a scam. He has argued that the accumulation model rewards early holders at the expense of new buyers.

The framing extends his long-running criticism of Strategy’s accumulation model. It also fits his repeated attacks on Saylor’s performance claims over a five-year window.

Critics of Strategy’s preferred stack warn that any suspended dividend would trigger a steep repricing across the structure. They say it could pressure broader confidence in treasury models built on the same template.

The coming quarters will reveal whether Saylor’s pledge to defend STRC dividends holds up under macro pressure. If it cracks, Schiff’s call about a suspended payout would land closer to the mark.

The post Schiff Calls MicroStrategy a Pure Ponzi and Bitcoin Hybrid Pyramid Scheme appeared first on BeInCrypto.

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