Strategy’s preferred equity instrument, STRC, has been trading below its $100 par value — a detail that has quietly drawn attention from investors watching the company’s ability to keep funding its Bitcoin purchases.
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Saturn Steps In As Questions Mount
The move came even as critics questioned whether demand for the instrument is strong enough to sustain Strategy’s aggressive acquisition pace.
STRC offers holders a monthly payout with an annual return of 11.5%, and the funds raised through it go directly toward buying more Bitcoin.
That question may already have an answer in the works.
Saylor Posts The Orange Dots — Again
The title of Saylor’s post — “The Beat Goes On” — captures the tone he has maintained for years: steady accumulation, public signaling, and near-total indifference to critics.
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Schiff Calls It A ‘Ponzi’ Scheme
His argument centers on the relationship between STRC issuance and Bitcoin’s price growth. According to Schiff, the claim that Bitcoin only needs to rise 2% annually to cover STRC’s 11.5% yield assumes the company stops issuing more STRC.
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If issuance grows, the required rate of Bitcoin appreciation rises with it. He also warned Saylor of potential lawsuits, saying the product’s marketing could be considered misleading.
Schiff sees only one exit from what he calls a death spiral — canceling the dividend. But he says that move would itself trigger steep losses across STRC, Strategy’s stock, and Bitcoin prices.
Strategy has not publicly responded to Schiff’s claims. Saylor, for his part, appears unmoved. The orange dots keep getting added to the chart.
Featured image from Gemini, chart from TradingView
