Peter Schiff has escalated his long-running feud with Michael Saylor, calling Strategy's preferred share STRC a 'centralized Ponzi' and urging the SEC to investigate Saylor's marketing aimed at retirees. Schiff argued that STRC's distributions rely on fresh capital inflows, not any organic earnings or operating profits—a structure he says violates SEC antifraud rules.
Schiff's retiree-marketing accusation
Schiff specifically flagged Saylor's portrayal of STRC as suitable for retirees seeking low-risk wealth preservation and steady income. That pitch, Schiff claims, runs afoul of SEC marketing regulations, especially when pitched to a demographic that can't afford to lose principal. He didn't offer new evidence, but the charge is the most direct regulatory call he's made against Saylor personally.
Saylor fires back, Strategy's buying slows
Michael Saylor shot back by suggesting Schiff simply dislikes the entire crypto industry—a deflection that sidesteps Schiff's structural critique. But the timing isn't great for Saylor. Strategy, still the largest corporate Bitcoin holder, recently slowed its Bitcoin purchasing pace after years of aggressive accumulation. That slowdown chips away at the narrative that STRC's returns come from a relentlessly growing Bitcoin stack.
Schiff draws a line between STRC and Bitcoin
Schiff was careful to separate this attack from his well-known view that Bitcoin itself is a decentralized Ponzi. STRC, he says, is different: it's centralized, depends on Saylor's ability to keep selling shares, and has no underlying productive asset beyond Bitcoin that Saylor already owns. Whether that distinction holds up legally is unclear, but it lets Schiff hammer Saylor without re-litigating the Bitcoin debate.
Rival models already in play
Other Bitcoin treasury vehicles, like Adam Back's Capital B, are raising capital using different structures—without a preferred share that pays a distribution tied to Bitcoin accumulation. Capital B's model may avoid the same regulatory questions, but it also doesn't offer the income pitch that Schiff says is the problem. For now, the SEC hasn't publicly responded to Schiff's call, and the question of whether STRC is a security with a flawed marketing strategy remains open.
