Peter Schiff Says Michael Saylor Would 'Crash STRC' Rather Than Bitcoin By Suspending Strategy's Preferred Stock Dividends

Economist Peter Schiff reacted on Wednesday to Strategy Inc. (NASDAQ:MSTR) Chair Michael Saylor’s admission about potentially selling Bitcoin (CRYPTO: BTC) to pay dividends on the firm’s preferred stock.

Schiff Attacks STRC Again

Schiff took a dig at Saylor and his firm on X, labeling the Perpetual Stretch Preferred Stock (NASDAQ:STRC) offering as a “Ponzi scheme” that gets prolonged by such commitments.

“But my guess is when the time comes, he'd suspend the dividend and crash STRC rather than crash Bitcoin,” Schiff predicted.

Strategy didn’t immediately return Benzinga’s request for comment

Will Saylor Really Sell Bitcoin?

Saylor said during Strategy's first-quarter earnings call that the company may "sell some Bitcoin" to fund a dividend and "inoculate" the market, a rather unexpected departure from when he told holders to “sell a kidney if you must, but keep the Bitcoin.”

Although he stressed that the potential sale would not be a reflection of any issues, insisting that all is "fine" with the company and Bitcoin.

Meanwhile, odds that the company sells any of its Bitcoin before Dec. 31 surged to 48% on Polymarket, up from 35% the day before.

Strategy’s Troubles In Bear Market

Strategy pays roughly $85 million monthly in cash dividends to STRC holders by issuing common stock and using those proceeds to fund the payouts. 

However, critics like Schiff have questioned how the company can sustain the dividend payout, given the company's persistent financial troubles in the Bitcoin bear market.

Strategy reported losses of $38.25 per share in the first quarter, while revenue beat the analyst consensus estimate at $124.3 million.

Price Action: At the time of writing, BTC was exchanging hands at $81,495.33, up 0.18% in the last 24 hours, according to data from Benzinga Pro.

Strategy shares were up 0.54% in pre-market trading after closing 0.043% lower at $186.82 during Wednesday’s regular trading session.

Benzinga’s Edge Stock Rankings indicate long-term weakness, while short- and medium-term trends remain positive

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