- Peter Schiff says Strategy’s 11% preferred dividend indicates financial stress.
- Strategy shares fell nearly 49% in 2025, ending as the worst performer in the Nasdaq-100.
- A pending MSCI decision could trigger up to $2.8 billion in passive outflows.
Peter Schiff warned that Strategy’s stock could post even worse returns in 2026 after the company lifted the dividend on its preferred shares to 11%.
Schiff’s comment followed Michael Saylor’s disclosure that the STRC preferred stock will pay a higher yield starting in January. He argued that the increase indicates stress rather than strength.
He said Strategy was already struggling to sustain a 10% payout and that raising it further shows the preferred shares are low quality. According to Schiff, Saylor’s announcement points to deeper balance sheet pressure that could spill into common shares.
Stock Performance Under Pressure
Strategy’s shares lost roughly 49% in 2025 after peaking above $450 mid‑year. The selloff accelerated in the second half, with the Bitcoin price falling sharply.
By year‑end, MSTR traded near $152, making it the worst‑performing stock in the Nasdaq‑100 for 2025. Schiff added that if the company were part of the S&P 500, its decline would rank among the index’s worst performers despite a strong year for US equities overall.
Interestingly, Strategy holds about 672,500 BTC at an average cost close to $75,000 per coin. At recent prices near $88,000, the position remains in unrealized profit, but the company’s share price has moved far more sharply than Bitcoin itself.
Schiff said this gap shows the risk of turning a public company into a leveraged Bitcoin proxy. As Bitcoin falls, Strategy’s net asset value compresses, increasing stress on equity and preferred holders.
MSCI Decision Adds Near-term Risk
The warning comes ahead of a key decision by MSCI on whether digital asset treasury companies should remain in its equity indices. A ruling is expected on January 15.
If Strategy is removed, analysts estimate potential passive outflows near $2.8 billion. According to Polymarket, there is a 75% probability that Strategy will be removed from the MSCI index by March 31.
It is important to note that for a long time, Schiff has been bearish on Bitcoin, even predicting that before a US dollar crash, “we will likely get a Bitcoin crash,” while gold and silver will continue to rise.
Related: Gold vs. Bitcoin War: CZ Turns the Tables on Peter Schiff in an Instant
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Source: https://coinedition.com/peter-schiff-claims-strategy-will-deliver-even-worse-returns-in-2026/
