Peter Schiff, CEO of Euro Pacific Asset Management, has reignited his long-standing critique of Strategy Inc., formerly known as MicroStrategy, following its latest Bitcoin acquisition on June 16, 2026. Schiff, a prominent gold advocate, alleges that the firm’s financing model for purchasing digital assets has become a “Ponzi scheme” that is fundamentally broken.
He argues that the company is currently forced to issue high-yield preferred shares to fund its treasury, a move he believes destroys shareholder value.
The latest tension follows Strategy Inc.’s purchase of 1,550 BTC on June 8, 2026, at an average price of $65,332 per coin, totaling roughly $101.3 million. This transaction pushed the company’s total holdings to 845,256 BTC.
Schiff argues that these aggressive buys are only possible because investors are willing to overpay for MSTR stock, which in turn allows Executive Chairman Michael Saylor to overpay for Bitcoin. According to Schiff, this mechanism results in a negative Bitcoin yield per share.
Schiff’s analysis focuses on the company’s STRC preferred shares, which currently carry an 11.5% annual dividend obligation. Since July 2025, when the dividend launched at 9%, the rate has seen seven consecutive monthly increases. Schiff contends that the firm’s lack of traditional corporate earnings makes this debt service unsustainable.
He claims the obligation can only be met by selling more preferred shares, discounted common stock, or Bitcoin itself.
Analysis of the 30 percent appreciation requirement
One of the most contentious points in Schiff’s critique is the “hurdle rate” required for Bitcoin to cover these high-yield obligations. In a post on X on April 25, 2026, he pushed back against claims that Bitcoin only needs to rise 2% annually to cover the yields.
He argued that such math assumes the company stops issuing new STRC, which is not the case. Instead, the continuous issuance of these shares increases the financial burden every week.
By May 23, 2026, Schiff clarified his stance, stating that the STRC framework actually depends on Bitcoin signals showing approximately 30% annual appreciation. He maintains that if Bitcoin fails to reach this threshold, the company enters a “death spiral.” In his view, the only way to halt this cycle is for the firm to cancel the dividend, a move that would likely alienate existing shareholders.
The weight of these dividend payments has already influenced the company’s holdings. One week prior to June 8, 2026, Strategy Inc. sold 32 BTC to meet preferred dividend obligations. This marked the firm’s first disposal of the asset since 2022.
While the company maintains a cash reserve of approximately $1 billion, Schiff warns that these funds will be exhausted by dividend payments if Bitcoin’s price remains stagnant.
Historical context of Strategy’s Bitcoin holdings
The scale of the company’s commitment to the digital asset is unprecedented in corporate finance. Since 2020, the firm has deployed approximately $64 billion into Bitcoin. As of early May 2026, the company held 818,334 BTC at an average cost of roughly $75,500 per coin.
Schiff notes that even over a five-year window ending May 23, 2026, the strategy had produced a negative total return when viewed through certain metrics.
The market has periodically reflected these concerns, with MSTR stock falling over 8% in the five days leading up to June 9, 2026. This volatility coincided with Bitcoin targets facing pressure from significant ETF outflows. Schiff suggests that owning MSTR is the “worst way” to bet on Bitcoin due to the structural risks embedded in the company’s leverage and debt-to-equity issuance.
Despite the “bad math” claims, Strategy Inc. continues to utilize the STRC instrument, which has financed approximately 50,792 BTC since its launch. Schiff maintains that the entire premise is built on the expectation of high annual gains that have not yet materialized consistently enough to cover the rising 11.5% yield.
He describes the situation as an “obvious Ponzi” because the company is transparent about its reliance on asset appreciation to pay its debts.
The impact of debt on shareholder value
The debate highlights a fundamental disagreement over corporate treasury management. Supporters of the strategy view it as a revolutionary way to leverage a hard asset, while critics like Schiff see a house of cards. Schiff argued on June 14, 2026, that the stock’s outperformance was a result of speculative fervor rather than sound financial planning.
He keeps a close eye on the 200-day moving average to gauge market sentiment versus the company’s increasing leverage.
As the company moves forward, the cost of its capital remains a central concern. The dividend on STRC shares has become a significant liability that requires constant asset growth to service. If the market experiences a prolonged downturn, the “infinite money glitch” that the company once enjoyed could be tested. For now, Strategy Inc.
remains fully committed to its path, even as Schiff continues to forecast a financial reckoning.