Peter Schiff, a prominent Bitcoin skeptic and gold bull, claimed that Strategy's preferred stock product STRC is close to a Ponzi scheme. According to Cryptopotato, Schiff explained via X, "A Ponzi scheme product uses funds from new investors to pay returns to existing investors, and STRC falls into this category. Although Strategy's software business generates a certain level of revenue, it is insufficient to cover an annual dividend of 11.5%. Furthermore, STRC dividends are optional payments, not legal obligations, so if payments cease, the yield will disappear, and demand could plummet. Since investors cannot demand redemption and can only sell, there is a possibility that the stock price could crash if market demand weakens."
