Peter Schiff is renewing his assault on MicroStrategy (MSTR), arguing the corporate’s five-year Bitcoin accumulation technique has produced a adverse whole return and that its STRC most popular inventory construction will depend on worth appreciation that has not materialized.
Schiff posted on X that MSTR has deployed roughly $64 billion into Bitcoin (BTC) since adopting its treasury technique. The place’s whole return stays adverse as of Might 23, he argued. He added that the complete STRC framework will depend on bitcoin appreciating roughly 30% per yr to fund its 11.5% annual dividend.
STRC’s Yield Math Beneath the Microscope
Technique set its STRC dividend fee at 11.50% for March 2026, the seventh consecutive month-to-month enhance since the popular shares launched in July 2025. The speed is adjusted month-to-month to maintain STRC shares buying and selling close to their $100 par worth.
Schiff’s critique facilities on the sustainability of that obligation. He contends that protecting an 11.5% annual payout requires Bitcoin to compound at a fee far above historic averages.
He additionally notes that ongoing STRC issuance raises that threshold every month as extra shares enter the float.
Schiff has beforehand labeled MSTR a Ponzi scheme, arguing the construction is self-reinforcing on the draw back. Beneath that studying, weak bitcoin efficiency reduces MSTR’s means to challenge new shares at a premium, limiting the capital obtainable to fund dividends.
“Effectively it hasn’t even managed to earn 2.5% but, even over 5 years, not to mention yearly for 5 years. Plus MSTR retains issuing extra STRC. In order that 2.5% hurdle fee will get greater each week,” Schiff mentioned.
Pushback From the Thread
Not all observers settle for the framing. One commenter argued that MSTR’s bitcoin holdings far exceed its dividend obligations and {that a} 2.5% compound annual development fee could be adequate to cowl funds.
Schiff rejected that determine, noting that bitcoin has not even reached that modest threshold since MSTR started accumulating.
A separate participant raised a distinct challenge, arguing the actual downside is retail traders failing to understand the volatility of a leveraged bitcoin proxy reasonably than any lack of disclosure.
Saylor has publicly challenged Schiff to defend his place, citing MSTR’s long-run worth efficiency relative to conventional property.
Technique holds 818,869 BTC at a mean value of roughly $75,540 per coin. With bitcoin buying and selling close to $76,800 on Might 23, the place sits solely marginally above its value foundation.
Whether or not that margin justifies Schiff’s death-spiral warning or indicators a brief trough will rely upon bitcoin’s trajectory. Technique’s MSTR Bitcoin acquisitions proceed, with Saylor but to acknowledge any structural restrict to the strategy.
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