Peter Schiff calls Strategy's STRC preferred stock a Ponzi scheme

Peter Schiff, a prominent Bitcoin skeptic and gold bull, has argued that Strategy's preferred stock, STRC, resembles a Ponzi scheme. According to CryptoPotato, Schiff stated on X that a Ponzi-style product pays returns to existing investors using funds from new investors, a model he believes STRC follows. While acknowledging that Strategy's software business generates some revenue, he claimed it is insufficient to cover the 11.5% annual dividend. Schiff also noted that the STRC dividend is optional rather than a legal obligation, meaning that if payments were to cease, the yield would vanish and demand could plummet. He added that because investors cannot redeem their shares and can only sell them, the stock price could crash if market demand weakens.