Peter Schiff Questions Strategy’s 12% Yield as Bitcoin Drops 19% This Year

Peter Schiff questioned whether Strategy’s bitcoin gains can sustain payments on its STRC preferred stock, which carries a variable dividend rate, after citing losses over two consecutive years. The criticism comes as bitcoin has fallen 19% this year, pressuring the treasury company’s model of issuing income-paying securities backed by expected BTC appreciation. Strategy, the largest corporate bitcoin holder, relies on the spread between its cost of capital and bitcoin returns to fund STRC’s dividend, making the payout sensitive to prolonged price weakness. The debate matters because STRC and similar instruments underpin Strategy’s ability to keep raising capital for purchases. Watch STRC’s dividend rate adjustments and any change in Strategy’s issuance pace as bitcoin’s drawdown extends.