Oh, what a delightfully dramatic affair! Our old friend Peter Schiff, the gold-obsessed maestro of monetary pessimism, has once again taken to the stage to decry the antics of Michael Saylor and Strategy ($MSTR). In his latest performance, he warns of a catastrophic “death spiral” that would make even the most seasoned theatre critic blush.
Schiff, ever the purveyor of doomsday forecasts, has turned his sights on Strategy’s issuance of high-yield preferred shares-those tantalizingly named $STRC, offering an 11.5% yield that would make a magician’s rabbit seem modest. The economist, with a flourish of his pen, claims this strategy is as mathematically sound as a juggling act on a tightrope.
A looming “death spiral”?
According to Strategy and its admirers, Bitcoin merely needs to grow by a meager 2% annually to cover the 11.5% yield on these preferred shares. A feat as achievable as convincing a cat to fetch a ball of yarn, one might say.
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But Schiff, ever the skeptic, insists this is a farce. He argues that the premise assumes Strategy will cease issuing new debt, a notion as plausible as a snowball’s chance in a sauna. “The more STRC MSTR sells,” he quips, “the more BTC must rise to cover the yield-like asking a tortoise to sprint a marathon.”
The gold bug, with his sardonic wit, contends that Strategy lacks the traditional earnings of a proper corporation to meet these obligations. “A tragic tale of financial alchemy,” he declares, “where Bitcoin is the golden goose, and the goose is running out of feathers.”
The more Bitcoin Saylor is forced to sell, the lower the market price plummets. And if the preferred shares falter, the company will be compelled to raise the yield even higher-like a game of financial musical chairs with no chairs.
“The only way to halt the death spiral is for MSTR to cancel the dividend,” Schiff concludes, with the gravitas of a man who’s seen too many financial operas. “Then STRC crashes, taking MSTR and BTC with it-what a finale!”
On Apr. 18, Schiff noted that the company can no longer fund its Bitcoin buying sprees by selling common shares at a premium. “Now it’s forced to issue preferred shares with an 11.5% yield,” he laments, warning that this obligation can only be met by “selling more preferreds, discounted common, or Bitcoin-because nothing says ‘financial stability’ like a bit of desperation.”
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2026-04-26 11:04