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.
A Preferred Stock Built Around BitcoinThe 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.
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 AttentionThat 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
