Peter Schiff Criticizes Strategy’s STRC Dividend Plan After $12.54B Loss, Labels it “Ponzi Scheme”

TLDR

• Strategy reported a $12.54B first-quarter 2026 net loss.
• Strategy holds 818,334 BTC at an average cost of $75,537.
• Michael Saylor said Bitcoin sales could help fund dividends.
• Schiff said Strategy may suspend STRC dividends before selling BTC.
• Strategy has about $1.5B in annual dividend and debt obligations.

Peter Schiff has renewed criticism of Strategy, formerly known as MicroStrategy, after Executive Chairman Michael Saylor said the company could sell Bitcoin to help fund dividend payments on its preferred shares.

Schiff, a long-time gold advocate and critic of Bitcoin, described Strategy’s preferred share structure as a Ponzi-like model in posts on X. His comments followed the company’s first-quarter 2026 results, which showed a $12.54 billion net loss and renewed questions over how the firm will meet recurring dividend commitments tied to its preferred stock.

Strategy remains the largest publicly traded corporate holder of Bitcoin. The company reported holdings of 818,334 BTC at an average purchase price of $75,537 per coin. Its balance sheet and capital strategy are closely watched because the firm has used debt, equity and preferred share issuance to expand its Bitcoin position.

Saylor said during the earnings call that the company may sell some Bitcoin to pay dividends if needed. He said such a move could show the market that Strategy is willing to use part of its holdings to meet financial obligations.

Peter Schiff Questions STRC Dividend Sustainability

Schiff focused his criticism on STRC, one of Strategy’s preferred share classes. He said the instrument depends on continued market confidence and fresh capital access, while carrying recurring dividend obligations.

According to Schiff, Strategy may eventually reach a point where paying preferred dividends becomes difficult. He argued that Saylor would be more likely to suspend STRC dividends than sell enough Bitcoin to pressure the broader market.

Schiff wrote on X that Saylor’s public commitment to selling Bitcoin, if necessary, was needed to keep confidence in the structure. He added that his own view is that Strategy would choose to stop the dividend and let STRC fall rather than sell Bitcoin in a way that could weaken BTC prices.

Strategy has issued multiple preferred share products in recent years as part of its capital plan. These instruments carry dividend requirements and are linked to the company’s ability to manage reserves, raise capital and maintain investor demand.

Michael Saylor Signals Possible Bitcoin Sales

Saylor said Strategy’s model involves using credit to acquire Bitcoin, allowing the asset to appreciate, and then selectively selling portions of the holdings to meet dividend obligations. He said the company could sell Bitcoin to fund a dividend and show that the option is available.

The company has about $1.5 billion in annual obligations tied to preferred stock dividends and interest on debt, according to reported figures. It also has roughly 18 months of dividend coverage based on U.S. dollar reserves relative to those obligations.

The comments drew attention because Strategy has long presented Bitcoin accumulation as the center of its corporate strategy. Any sale of BTC, even for dividend funding, would mark a notable use of reserves by the company.

After the earnings call, Strategy shares fell more than 4% in after-hours trading. Bitcoin also traded below $81,000 following the update, according to market reports.

Strategy Faces Balance Sheet Scrutiny

Strategy’s first-quarter loss came as accounting treatment and Bitcoin price movements remained central to its financial results. The reported net loss increased attention on the firm’s leverage, dividend coverage and preferred equity structure.

Critics of Strategy’s model say the company depends on continued investor confidence in Bitcoin and in its own ability to issue capital market instruments. They argue that any suspension of preferred dividends could cause repricing across related products.

Supporters of Strategy’s approach view the company as a corporate Bitcoin treasury vehicle. They point to its large BTC holdings and long-term accumulation plan as the main reason investors continue to track the stock and its preferred shares.

Schiff has repeatedly criticized both Bitcoin and Strategy’s acquisition model. His latest comments extend that position by focusing on the preferred share stack and the question of whether dividends can remain funded during difficult market conditions.

The debate now centers on whether Strategy can keep meeting dividend and debt obligations while maintaining its Bitcoin-heavy balance sheet. The coming quarters will show whether the company uses BTC sales, cash reserves, new capital raises or a combination of those tools to support payments.

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