Prominent Bitcoin critic Peter Schiff has formally urged the U.S. Securities and Exchange Commission (SEC) to investigate public statements made by MicroStrategy (now Strategy) founder Michael Saylor regarding the company's perpetual preferred stock, STRC. The controversy erupted on May 11, 2026, when Schiff posted a tweet accusing Saylor of violating SEC anti-fraud and marketing rules by presenting STRC as suitable for conservative investors, claiming retirees were purchasing it for low-risk wealth preservation and income without risk to principal.
"How can the SEC let @Saylor get away with public comments that $STRC is suitable for retirees whose primary investment objectives are low-risk wealth preservation and income, and who don't want to risk losing principal? This is a violation of SEC antifraud and marketing rules," Schiff wrote. He labeled STRC a "classic centralized Ponzi scheme," arguing that Bitcoin generates no profits and relies entirely on new buyers, which he believes will expose Strategy to future investor lawsuits.
Saylor, defending his position, rejected the Ponzi characterization, likening the company's model to a developer business. He emphasized that high market liquidity allows Strategy to absorb $100–200 million in Bitcoin purchases per hour without significant price impact, and that long-term capital inflows are supported by global macroeconomic factors—from the Federal Reserve's tight monetary policy to geopolitical tensions in the Middle East. Saylor also clarified that while the company may selectively sell BTC to meet STRC-related obligations, any such sale would be accompanied by net buying, ensuring the balance grows over time: "If 1 BTC is sold, another 10–20 BTC are purchased on top of it."
Amid the debate, Strategy’s model has shown accelerating momentum. After 18 days of volatility, STRC recovered to the $100 parity mark. The recovery boosted volumes significantly—on Monday alone, Strategy accumulated approximately 322 BTC, compared to just 535 BTC throughout the entire previous week. This suggests that despite the regulatory and conceptual disputes, demand for the instrument and associated Bitcoin accumulation remains robust.
