Schiff Slams MicroStrategy Again Amid Rising Leverage Concerns
Peter Schiff criticized MicroStrategy, claiming its Bitcoin-backed dividend strategy is unsustainable and relies on unrealistic annual price growth.Summary
Peter Schiff has renewed his criticism of MicroStrategy (MSTR), arguing that its five-year Bitcoin accumulation strategy has failed to yield positive returns. Schiff contends that the company’s STRC preferred stock dividend framework is fundamentally flawed, as it requires Bitcoin to appreciate by approximately 30% annually to cover the 11.5% dividend payout. He characterized the model as a "Ponzi" scheme, warning that weak Bitcoin performance hampers the company's ability to issue new shares to fund these obligations. While some proponents argue that lower growth rates could suffice, Schiff maintains that Bitcoin's performance has not yet met even modest thresholds, leading to ongoing concerns about the company's long-term sustainability.
(Source：BeInCrypto)