Peter Schiff renewed his criticism of Strategy’s STRC stock after the security fell to about $93.50, below its $100 launch price. In a June 16 post on X, the longtime Bitcoin critic said investors who bought at launch were now sitting on losses of about 6.5%. His remarks come as Strategy continues selling the preferred stock to raise money for additional Bitcoin purchases.
Schiff also questioned Michael Saylor’s promotion of STRC as an investment for retirees focused on protecting their principal. He wrote, “$STRC is trading at 93.5. That means investors who paid $100 are already down 6.5% on an investment @Saylor promoted as being safe for retirees who prioritize principal protection. Also, the current yield is 12.3%. $MSTR must raise the 11.5% yield to 12.3% in order to issue more.” Schiff argued that the stock’s decline undermines claims that it offers strong protection for conservative investors.
The criticism comes as STRC continues trading below its $100 launch price. Yahoo Finance data showed the preferred stock changing hands at $93.53 on Nasdaq during late-morning trading, down 1.75% on the session. The decline pushed the stock further below its intended trading level and increased pressure on Strategy’s income-focused offering.
STRC, known as Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, pays investors a dividend that currently stands at about 11.5% annually. The company adjusts that rate each month in an effort to keep the stock trading close to its $100 par value.
When the share price falls below that level, Strategy can raise the dividend to attract buyers. As a result, investors receive a higher yield when the stock trades at a discount. With STRC recently changing hands below $94, the effective yield has climbed above 12%, highlighting the trade-off between income and share-price performance.
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(adsbygoogle = window.adsbygoogle || []).push({});Schiff’s latest comments mark the latest chapter in his long-running dispute with Michael Saylor and Strategy’s Bitcoin-focused business model. Earlier, Schiff argued that Strategy previously sold shares at premiums to investors. He said the company’s recent fundraising efforts rely on selling securities at discounts instead.
His criticism intensified in April when he described STRC as “the most obvious Ponzi that has ever existed.” Schiff argued that investors buy the security for its double-digit dividend rather than for exposure to Bitcoin. He also criticized regulators for allowing Strategy to market the product and warned that investors could face losses if dividend payments are reduced.
The debate comes as Strategy continues using preferred stock offerings to raise money for Bitcoin purchases. The company currently holds 846,842 Bitcoin, valued at roughly $64 billion at recent market prices. Those holdings have made Strategy the largest corporate owner of Bitcoin and placed its financing strategy under growing scrutiny.
Saylor, however, remains firmly bullish on the cryptocurrency’s long-term outlook. Speaking at BTC Prague 2026, he said Bitcoin could eventually climb from about $70,000 to $7 million per coin as it attracts a larger share of global capital. He also argued that the Bitcoin network could one day exceed $100 trillion in value.
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