Peter Schiff Warns Michael Saylor of Lawsuits, Labels STRC “Misleading to Constitute Fraud”

American economist and “Gold bug” Peter Schiff warned Michael Saylor of lawsuits as Strategy uses funds raised from STRC perpetual preferred stock to buy Bitcoin. He calls STRC “misleading to constitute fraud.”

Peter Schiff Takes Aim at Michael Saylor and Strategy’s STRC Stock

After heavy MSTR Class A common stock dilutions, Michael Saylor’s Stategy Inc (NASDAQ: MSTR) relies mostly on STRC perpetual preferred stock to raise funds to buy Bitcoin. It is designed to trade near $100 par value with low volatility. It pays monthly cash dividends, with the annualized yield currently at 11.5%.

Bitcoin critic Peter Schiff responded to a X post by Michael Saylor, escalating their long-running feud. Schiff said STRC is so “misleading to constitute fraud.” This is not the first time Shiff has called Stretch preferred stock a fraud, urging investors to sell stocks and switch to gold and silver.

Peter Schiff warned Michael Saylor of potential lawsuits when dividends are canceled and the stock tumbles. “Get ready for the lawsuits when the dividends are cancelled and the stock craters,” he said.

STRC Stock Drops Below Par Value Again

As Strategy (formerly MicroStrategy) resumes its aggressive Bitcoin accumulation, STRC stock has dropped below $100 par value again. However, STRC raised enough capital to buy another 23,934 BTC worth $1.76 billion. Saylor has dismissed critics by stating, “If this makes you uncomfortable, it’s working.”

STRC stock dropped 0.94% to $99.06 on Thursday. Trading volume exceeded 3 million, above the average of 2 million. At premarket on Friday, the stock is trading 0.030% higher at $99.09.

As CoinGape reported previously, Michael Saylor’s Strategy acquired 13,927 BTC for $1 billion. Michael Saylor’s Bitcoin treasury company now holds 780,897 BTC worth almost $59 billion.

Meanwhile, MSTR stock price closed 3.76% higher at $148.94 on Thursday as Bitcoin price climbed amid the Israel-Lebanon ceasefire. The intraday low and high were $139.33 and $149.16, respectively.

Bitcoin price is currently trading at $75,320 at press time. The 24-hour low and high are $73,346 and $76,347, respectively. Trading volume increased ahead of crypto options expiry.

Also Visit: Best Crypto Sign Up Bonuses, Offers & Promotions April 2026