Peter Schiff on Monday called on the SEC to investigate Michael Saylor for marketing STRC preferred stock to retirees, arguing the 11.5% dividend is unsustainable and labeling it “a classic centralized Ponzi.”

Schiff Says Saylor Violated SEC Antifraud Rules

Schiff wrote on X, asking how the SEC can let Saylor get away with public comments that STRC is suitable for retirees whose primary investment objectives are low-risk wealth preservation and income.

“This is a violation of SEC antifraud and marketing rules,” Schiff wrote.

In a follow-up post, Schiff wrote that Saylor admitted STRC is being bought by retirees seeking low-risk wealth preservation. “But STRC is actually high-risk,” Schiff wrote. “Saylor’s comments will help retirees who lose money win lawsuits against $MSTR.”

The dispute intensified after Saylor acknowledged during Strategy Inc.’s (NASDAQ:MSTR) Q1 earnings call that the company may sell Bitcoin (CRYPTO: BTC) to fund STRC dividend payments. `

Saylor later clarified that Strategy would “never be a net seller of Bitcoin,” saying if 1 BTC is sold, another 10-20 BTC are purchased on top of it.

Schiff fired back on X, writing that Saylor walked back his admission by claiming he would only sell Bitcoin if he were a net buyer at the same time. 

“But to pull that off, he must consistently sell Bitcoin at higher prices than he pays to buy it,” Schiff wrote.

Schiff Calls STRC A Centralized Ponzi Scheme

Schiff drew a clear line between his critiques of Bitcoin and STRC. “But I’ve called Bitcoin a new variant of decentralized Ponzi. STRC is different: a classic centralized Ponzi run by $MSTR,” he wrote on X.

Peter Schiff argues that Strategy's software business generates only a fraction of the roughly $80 million to $90 million needed for monthly payouts, making STRC's 11.5% dividend unsustainable.

He argued that the company pays the yield by selling more STRC shares and using money from new investors to pay existing investors.

Schiff also questioned Strategy’s stock premium. “If Strategy can issue an unlimited amount of STRC at $100 per share, and use the proceeds to buy Bitcoin, why would anyone buy MSTR at a premium to its Bitcoin holdings?” he wrote. 

“Why pay $454 for $100 worth of Bitcoin when you can buy $100 worth of Bitcoin for $100?” he added.

Strategy Bought Another 535 BTC Today

Strategy disclosed earlier today that it purchased another 535 BTC for roughly $43 million at an average price of $80,340 per coin. 

That brings Strategy’s total holdings to 818,869 BTC, acquired for approximately $61.86 billion at an average cost of $75,540 per coin.

The company has recorded a Bitcoin yield of 9.4% year-to-date in 2026, and STRC continues to trade near its $100 par value with the dividend sitting at 11.5% annualized. 

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