Vocal cryptocurrency critic and gold advocate Peter Schiff has labelled digital asset treasury Technique firm’s evolving enterprise mannequin a “mid-cycle Ponzi.”
Schiff has slammed the corporate’s transfer to promote components of its Bitcoin reserves so as to fund dividend funds and repair company debt.
A ‘fully totally different enterprise mannequin’
Throughout the preliminary phases of the corporate’s Bitcoin accumulation, Michael Saylor’s agency issued convertible debt and bought inventory to buy the digital asset. Now, Schiff notes, the stream of capital has reversed.
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“Technique now has a very totally different enterprise mannequin,” Schiff acknowledged. “As an alternative of promoting frequent and most popular inventory and issuing debt to purchase Bitcoin, the brand new technique is to promote Bitcoin to pay curiosity and dividends, repay debt, purchase again shares it bought, and hope that Bitcoin’s value goes approach up.”
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He identified that Technique spent roughly $17 billion buying Bitcoin since October 2025. But, the asset’s value nonetheless skilled extreme drawdowns. “If Bitcoin was that weak with Technique shopping for $17B, think about how a lot weaker will probably be with Technique promoting $3.25B, plus extra to take care of its minimal U.S. greenback reserve,” he warned.
The dividend spiral
In accordance with Schiff, the present yield on $STRC has spiked to roughly 15% attributable to value depreciation. “Meaning to get the worth again as much as $100, Technique should increase the dividend charge,” Schiff defined.
Schiff believes this creates a detrimental suggestions loop: declining most popular inventory costs pressure greater dividend payouts, which in flip require heavier Bitcoin liquidations. This in the end places much more strain on the asset’s value.
Looming draw back dangers
Schiff predicted that Bitcoin’s technical assist ranges are in jeopardy attributable to contemporary promoting strain.
The analyst believes that the $58,000 assist degree may now maintain. “As soon as it provides approach, Bitcoin may collapse under $50,000, testing the August 2024 low,” he projected.