- Peter Schiff calls $STRC a Ponzi scheme after a farmer posted 0.96% yield from reinvested dividends.
- Schiff argued STRC is not comparable to productive assets like farmland.
- Schiff says $STRC is unsustainable because its 11-12% dividends rely on new shares or liquidating BTC.
On May 31, 2026, a farmer’s son sparked a heated debate on X when he shared how his father excitedly emailed him about receiving extra $STRC shares via dividend reinvestment, boosting his holdings by 0.96% and yielding 11-12% versus typical bank rates of 1-2%.
Michael Saylor amplified the story with a repost, but prominent gold advocate and Bitcoin (BTC) critic Peter Schiff has fired back, accusing the post of violating SEC rules by lacking risk disclosures and referring to $STRC as a Ponzi scheme.
Peter Schiff Calls $STRC a Ponzi Scheme
A user known as Mocha on X shared an email from his dad, a farmer, who noticed his $STRC holdings increased by 0.96% after a dividend payment. The father expressed excitement about receiving 11-12% returns by simply letting someone else hold his money, far exceeding traditional bank rates of 1-2%.
The son used a farmland metaphor to explain the $STRC concept: owning land that consistently produces crops (dividends), with reinvested proceeds buying more productive units even if market prices fluctuate. The post gained significant traction, including a repost from Michael Saylor, co-founder of Strategy, and sparked discussions about accessible Bitcoin exposure for non-technical users.
On June 1, 2026, Peter Schiff responded to Michael Saylor’s repost, arguing that it violated SEC disclosure standards by presenting a misleading comparison without adequately outlining the risks. Schiff contended that STRC should not be compared to productive farmland because it does not generate output on its own and instead depends on payment commitments that could be altered. He further argued that investors may have limited legal protections if those commitments are not fulfilled.
Why Peter Schiff Criticizes Strategy’s Digital Credit and $STRC Yield Model
Peter Schiff views Strategy’s digital credit product $STRC and its yield model as fundamentally different from traditional dividend stocks or bonds because the yield ultimately traces back to BTC’s price appreciation and/or MSTR’s ability to keep raising capital, making it vulnerable if BTC drops sharply or new investment dries up.
In Schiff’s view, the high-yield digital credit model lacks the genuine economic output of traditional farmland or productive assets and instead relies on continuous capital raising or BTC liquidation, making the promoted benefits unsustainable and misleading.
What’s Next as the Debate Over BTC-Backed Yield Products Intensifies?
Notably, debate over BTC-backed yield products like STRC could intensify as adoption grows. BTC-backed income products highlight BTC’s potential as productive capital but raise risks of volatility, dilution, and regulatory scrutiny.
As a result, stricter regulatory focus on disclosures and compliance could increase. More competing products may enter the market with improved structures. Market volatility will test dividend sustainability, separating stronger offerings from weaker ones, while ongoing public debate will also drive investor education and caution during BTC price swings.
Related: Bitcoin Critic Peter Schiff Calls Strategy an “Obvious Ponzi,” Targets SEC Oversight
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