Peter Schiff Labels Strategy a Ponzi Scheme After $216M Bitcoin Liquidation

Schiff argues that the firm’s transition from issuing stock and debt to fund acquisitions toward selling Bitcoin to cover interest, dividends, and debt costs signals a fundamental weakness in its treasury model. He warns that if the company continues to offload assets to support its 12% dividend rate on STRC securities, it may trigger downward pressure on Bitcoin’s price, potentially threatening the $58,000 support level.

Despite the criticism, Michael Saylor maintains that these limited sales do not abandon the company’s broader accumulation goal. According to Saylor, the firm intends to remain a net buyer, asserting that any capital raised is part of a larger plan where future acquisitions will far outweigh current liquidations. With 843,775 BTC still in its reserves and $2.55 billion in cash, the company remains the largest corporate holder of the asset. Markets have largely shrugged off the move, with Bitcoin holding steady near $63,369 as analysts debate whether current demand can absorb future sales under the company’s $1.25 billion monetization framework.