Peter Schiff: Strategy of high-yield issuance of STRC carries a risk of dividend suspension

SmartContractAuditor · 2026-03-10T13:59:19+00:00

Economist Peter Schiff warns that Bitcoin is currently supported by Strategy Corporation, which has increased the dividend rate on its preferred shares to sustain financing and buy Bitcoin. However, cash consumption is rising, and there is a risk of dividend suspension, which could lead to the need to sell Bitcoin.

SmartContractAuditor

2026-03-10 13:59:19

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Odaily Planet Daily reports that gold supporter and economist Peter Schiff posted on X platform warning that the current Bitcoin “pyramid” is actually supported by Strategy. The company has increased the dividend yield of perpetual preferred stock STRC to 11.5% (up from 10% in September last year) to ensure continuous financing and Bitcoin purchases. As STRC shares are issued continuously, Strategy’s cash consumption is also increasing. If cash runs out, there is a risk of dividend suspension, and Michael Saylor may have to sell Bitcoin to pay dividends.

Previously, Strategy’s head of strategy Chaitanya Jain stated that STRC and Strategy would jointly form the “ultimate Bitcoin accumulation machine.” This ongoing and large-scale institutional buying pattern could permanently change the market structure of Bitcoin’s bear market.

BTC3.24%

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