Peter Schiff called Strategy’s (NASDAQ:MSTR) preferred stock STRC “the largest Ponzi in the world” after the company claimed the security was backed by Bitcoin (CRYPTO: BTC), warning the structure could collapse if new investors dry up.

The “Ponzi” Attack

Schiff responded to Strategy’s tweet claiming STRC was “backed by Bitcoin” on Tuesday, writing on X: “You mean it’s the largest Ponzi in the world. Investors don’t want Bitcoin. They want the 11.5% yield.”

He added that such returns were “financed by a pure Ponzi scheme,” warning that the structure could collapse if new investors dry up. “Then STRC crashes to zero,” Schiff wrote.

In an earlier response to Michael Saylor’s latest Bitcoin purchase, Schiff said: “This is really getting crazy. You can’t keep this up indefinitely. A collapse is inevitable. The bigger you build the pyramid, the bigger the losses when it does.”

The $2.54 Billion Purchase

Saylor announced on April 20 that Strategy acquired 34,164 Bitcoin for about $2.54 billion at an average price of $74,395 per token. 

The purchase lifted the firm’s total holdings to 815,061 BTC, acquired for roughly $61.56 billion.

That places Strategy as the second-largest known holder of Bitcoin, behind Satoshi Nakamoto’s estimated stash of around 1.1 million BTC.

Saylor’s $21 Million Bitcoin Thesis

Despite backlash from critics, Saylor has remained unwavering in his bullish outlook.

Appearing on the Bankless podcast last week, he reiterated his belief that Bitcoin could eventually reach $21 million per coin.

Saylor believes Bitcoin will compound at roughly 20% to 30% annually over decades, eventually reaching around $20 million per coin as it absorbs the world’s monetary premium.

In his view, Bitcoin will emerge as the dominant form of digital capital, replacing gold.

He argued that wider recognition of Bitcoin as a capital asset by major economies like the U.S., China, Europe, and Japan would drive sustained demand. 

Deeper integration with the banking system and expansion of financial products like ETFs would also fuel growth.

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