Peter Schiff thinks Strategy executive chairman and co-founder Michael Saylor is misleading retirees. The outspoken economist fired off a warning on X, asking how the SEC could allow Saylor to publicly describe STRC as suitable for retired investors whose main goals are low-risk wealth preservation and steady income.
Schiff called it a violation of SEC antifraud and marketing rules. Strategy has not publicly responded to the criticism.
A Preferred Stock Built Around Bitcoin
The debate comes as Strategy pulled in over $206 million through its STRC perpetual preferred stock program. According to data from Bitcoin Treasuries’ ATM tracker on May 11, the company issued 2.12 million shares to generate those proceeds. At an average Bitcoin price of $81,471, that haul could buy roughly 2,536 BTC.
The capital raise happened the same day Strategy announced it bought $43 million worth of Bitcoin — its first purchase after a one-week pause.
The timing was no coincidence. STRC’s return to its $100 par value earlier in the session reopened the door for fresh share sales under the company’s at-the-money program.
Trading volume told the story clearly. STRC recorded close to $445 million in daily volume on May 11, with the stock barely moving — it ranged from $99.99 to $100.01. That kind of price stability was the green light the program needed.
How STRC Works
The stock’s structure was designed by Saylor himself. Reports indicate STRC is built to hold steady at $100 per share, with dividend payouts that shift depending on where the stock trades.
When the price dips below par, yields go up to pull investors back in. When shares trade at or above the target, the company can cut the payout and redirect capital toward Bitcoin purchases. STRC currently yields 11.5% annually, with the next ex-dividend date set for May 15.
STRC had already shown signs of recovery on May 8, when it closed at $99.99 and climbed back to $100 in after-hours trading. Volume that day topped $218 million — a signal the stock was regaining footing before Monday’s full rebound.
Schiff’s Challenge Draws AttentionSchiff’s objection cuts to a basic question about who STRC is for. The preferred stock is linked, at least indirectly, to Strategy’s ongoing Bitcoin accumulation strategy, which carries its own risks.
That tension — between the stock’s structured, fixed-price design and the volatile asset it funds — sits at the center of the dispute.
Strategy has built a model around raising equity capital and using the proceeds to buy Bitcoin. The STRC program is one of several instruments the company uses to keep that cycle running. With Monday’s raise added in, the machine is moving again.
Featured image from Shutterstock, chart from TradingView