Highlights:
- Peter Schiff criticized Saylor’s Bitcoin strategy and called it a “pyramid scheme.”
- He warns STRC funding model may force the Strategy to sell Bitcoin under pressure.
- Schiff calls attention to potential financial instability from Strategy’s aggressive Bitcoin buying.
Economist Peter Schiff has renewed his criticism of Michael Saylor’s Bitcoin (BTC) strategy. He calls it a “Bitcoin pyramid” and warns of risks tied to Strategy’s preferred stock, STRC. Schiff shared his views on X, sparking debate about the sustainability of Strategy’s financing and its impact on Bitcoin markets.
Advertisement
🚨LATEST: PETER SCHIFF WARNS OF “BITCOIN PYRAMID” RISK AT STRATEGY
Michael Saylor’s (@saylor) Bitcoin $BTC strategy could face structural pressure, economist Peter Schiff (@PeterSchiff) says.
Schiff described the model as a “Bitcoin pyramid.” His criticism centers on Strategy’s… pic.twitter.com/xA0amDoY81
— BSCN (@BSCNews) March 10, 2026
Under Saylor, Strategy (formerly MicroStrategy) has focused on Bitcoin accumulation. The company is the largest public corporate Bitcoin holder. Recent SEC filings show it bought 17,994 BTC for $1.28 billion. This brings total holdings to about 738,731 BTC.
The purchase was mainly funded through equity, including common shares and STRC preferred stock. This acquisition is part of Strategy’s broader “42/42” capital plan, which aims to raise $84 billion by 2027 through a mix of equity offerings and convertible debt. All funds raised under this plan are intended for additional Bitcoin purchases.
Strategy has acquired 17,994 BTC for ~$1.28 billion at ~$70,946 per bitcoin. As of 3/8/2026, we hodl 738,731 $BTC acquired for ~$56.04 billion at ~$75,862 per bitcoin. $MSTR $STRC https://t.co/wB1k3Nt1xa
— Michael Saylor (@saylor) March 9, 2026
How STRC Differs From Strategy’s Ordinary Shares
STRC is a type of preferred share that works differently from ordinary MSTR stock. Unlike the volatile Bitcoin price, STRC is designed to trade close to $100. According to Strategy and its economists, this stability makes it appealing to conservative investors, including funds that are not allowed to buy cryptocurrency directly.
To maintain the $100 price, the company may need to increase the dividend yield during market declines. In March this year, the yield reached 11.5% annually. STRC holders also have priority for payments. The company must pay STRC holders monthly dollar dividends before it distributes any profits to ordinary shareholders.
Schiff Warns STRC Could Eventually Pressure Bitcoin Sales
Schiff warns that Strategy’s risks stem from a recursive debt cycle. The company issues STRC to raise dollars and then quickly uses those funds to buy Bitcoin, which produces no cash flow or dividends. As a result, Michael Saylor faces a difficult choice when it comes to paying STRC holders the 11.5% annual dividend. He must either attract new investors, a move Schiff argues mirrors the mechanics of a classic pyramid scheme, or draw from the company’s existing cash reserves, which could require selling some of its Bitcoin holdings.
Currently, Strategy’s cash reserves are approximately $2.25 billion in cash reserves. Considering the 11.5% dividend rate and the sheer number of outstanding shares, Strategy is spending hundreds of millions of dollars annually just to keep this instrument and its price stable. This financial strain underscores the delicate balance that Strategy must maintain between continuing its Bitcoin accumulation and meeting its obligations to STRC investors.
Bitcoin’s recent weakness has also put Strategy’s holdings in the red on paper. According to DropsTab, the company faces an unrealized loss of just over $4 billion, showing how sensitive it is to short-term price swings. Even so, Strategy has stayed committed to its buying strategy and continues to treat price dips as opportunities to expand its Bitcoin position.
eToro Platform
Best Crypto Exchange
- Over 90 top cryptos to trade
- Regulated by top-tier entities
- User-friendly trading app
- 30+ million users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.
Advertisement
