Peter Schiff: Strategy's 'Ponzi scheme' has entered its middle stage

Peter Schiff, CEO of Euro Pacific Capital and a noted Bitcoin critic, has described Strategy's (Nasdaq: MSTR) business model as a Ponzi scheme that has now moved from its initial to its middle stage. He contends that the company's practice of using funds from preferred stock sales to accumulate Bitcoin is akin to a scam. Schiff has previously stated that Strategy will eventually face a point where paying dividends on its STRC preferred stock becomes unsustainable. When that time comes, he predicted, Michael Saylor will have to choose between liquidating the company's assets or selling off preferred shareholder equity. Schiff asserted that this structure is destined to collapse.