Bitcoin critic and gold bug Peter Schiff has sharply criticized Strategy’s STRC perpetual preferred stock, labeling it the “most obvious Ponzi” scheme. He also slammed the SEC oversight for failing to stop the promotion.
Stretch (STRC) stock is bouncing again to reclaim its $100 par value, as MSTR stock jumped 9.39% on Wednesday. Analysts have raised price targets for MSTR stock.
Peter Schiff Escalates Attack on Strategy’s STRC
The long-running Peter Schiff-Michael Saylor feud just got escalated amid Schiff’s fresh attacks on STRC stock, claiming it is an obvious Ponzi scheme. Shiff made the remarks in response to Michael Saylor and Strategy continuing to promote STRC, arguing that investors are primarily chasing the 11.5% annual dividend rather than Bitcoin exposure.
“Sometimes a Ponzi scheme is not obvious. The only sign may be that it seems too good to be true. But that is not the case with STRC, which is the most obvious Ponzi that has ever existed,” he said in an X post on April 23.
Strategy uses Stretch perpetual preferred shares, offering a high dividend of around 11.5% paid monthly, to attract yield-seeking investors. The company uses STRC stock sales to purchase more Bitcoin. Currently, the Bitcoin treasury company holds massive 815,061 BTC worth $63.38 billion.
Peter Schiff also criticized the US SEC for allowing Michael Saylor to promote STRC.“It is more proof that we don’t need an SEC,” he added. Schiff hosted two X Spaces to challenge followers to disprove him.
Last week, Peter Schiff warned Michael Saylor of potential lawsuits when STRC dividends are canceled and the stock tumbles. He claimed STRC is so “misleading to constitute fraud” for Bitcoin purchases.
$BTC powers $STRC dividends pic.twitter.com/VrhhVeWQJf
— Michael Saylor (@saylor) April 22, 2026
Stocks Rise amid Bitcoin Recovery
As Strategy (formerly MicroStrategy) resumes its aggressive Bitcoin accumulation, STRC stock has jumped to $99.50 in after market hours and nears reclaiming the $100 par value to continue BTC purchases.
While Peter Schiff continues to attack Michael Saylor and STRC, the strategy of raising capital through perpetual preferred stock has attracted interest. Strive CEO Matt Cole said, “Digital credit and STRC is a clear multi-trillion dollar idea. In almost every single dimension, this is a better product than private credit.”
STRC stock closed 0.15% higher at $99.44 on Wednesday. Trading volume was 2.66 million, above the average of 2.4 million. This indicates Strategy could start buying BTC via STRC funds soon.
Meanwhile, MSTR stock closed 9.39% higher at $179.36 on Wednesday as Bitcoin price climbed above $79K after Trump said US-Iran peace talks would resume soon. The intraday low and high were $174.55 and $183.25, respectively.
TD Cowen analyst Lance Vitanza reiterated a buy rating and kept MSTR stock price target at $385. He asserted the proposed STRC bi-monthly dividend proposal creates a funding loop for continued Bitcoin accumulation.
Bitcoin price is currently trading around $77,900 at press time. The 24-hour low and high are $77,456 and $79,468, respectively. Trading volume increased amid profit booking by short-term holders.
If you’re looking to invest in newly launched crypto, check out our recommendations for new cryptocurrencies to invest in April 2026.