Peter Schiff warns of a "Bitcoin pyramid" collapse at MicroStrategy. Discover how 11.5% STRC preferred share dividends could force Michael Saylor to liquidate Bitcoin to cover cash burning in 2026.
Peter Schiff warns of a "Bitcoin pyramid" collapse at MicroStrategy. Discover how 11.5% STRC preferred share dividends could force Michael Saylor to liquidate Bitcoin to cover cash burning in 2026.Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.
Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available., revealed what he believes is the main vulnerability in Michael Saylor’s Bitcoin strategy, which he bluntly called a"Bitcoin pyramid." At the center of the discussion is the instrument STRC — Stretch Preferred Stock — which, according to Schiff, could become the reason for the first forced sale of Bitcoin in the history of Strategy .What is STRC? These are preferred shares that operate on a principle different from the ordinary MSTR stock. First, unlike the volatile , the STRC share aims to always trade at exactly $100, which, according to Strategy and its economists, makes the instrument attractive to conservative funds that are prohibited from buying crypto directly.must raise the yield, and in March this year, the rate reached 11.5% annually. In addition, STRC holders stand first in line to receive payments. The company is obligated to pay them monthly dividends in dollars before any profits can go to holders of ordinary shares.The essence, in his view, lies in recursive debt. Strategy issues STRC to obtain dollars, but those dollars are used to buy Bitcoin, while Bitcoin itself does not generate cash flow, as it has no dividends. Therefore, to pay 11.5% to STRC holders, Saylor must either attract new investors, which Schiff considers a classic sign of a pyramid structure, or spend cash reserves, meaning selling Crypto Market Review: Is Bitcoin Bull Mode Switched On? XRP Looks Hopeless at $1, Solana Heads to $95 in Surprising Mini-Bull RunAt the moment, Strategy’s cash reserves are estimated at $2.25 billion. With the current 11.5% rate and the volume of preferred shares issued, the company spends hundreds of millions of dollars per year just to service this stability instrument.Because of this, Schiff warns that once the cash runs out, Saylor will face a choice. Either declare a dividend default, which would wipe out the value of STRC and collapse confidence in MSTR, or begin liquidating Bitcoin. Endorphina Club Returns to Host the GamingTECH CEE Awards Ceremony & Party at HIPTHER Prague Summit 2026 Istanbul Blockchain Week Launches Institutional Markets Summit: Pioneering Institutional Adoption of Digital Assets
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bill Maher’s switch-up on Schiff is ‘fair’ in showing shifting standards: Joe ConchaConcha applauded Maher’s “craptastically awesome” switch-up on Schiff and the U.S. president’s involvement with foreign conflict.
Read more »
No, Bitcoin Is Not Forming 'Cup and Handle' Pattern to $500,000, Says Peter BrandtPeter Brandt rejects the $500,000 BTC "Cup & Handle" theory. Unlike gold's rally by 180%, he claims Bitcoin's chart structure fails to qualify.
Read more »
‘Tink’ Series, Based on ‘Peter Pan’ Fairy Tinker Bell, in the Works at Disney+Bridget Carpenter and Liz Heldens are developing the project.
Read more »
ETFs and Corporate Treasuries Pull Millions of BTC Away From ExchangesAnalysts say Bitcoin increasingly sits inside ETFs and corporate treasuries.
Read more »
Bitcoin Eyes $70K, Oil Prices Dump as Trump Claims the War Is Almost OverThe S&P 500 and gold are also surging.
Read more »
Legendary Trader Peter Brandt Maps Out Next Phase of Bitcoin's Price ActionVeteran trader Peter Brandt has unveiled a remarkably bullish "Banana Split" forecast for Bitcoin.
Read more »