Peter Schiff Warns That the Strategy's High-Yield STRC Token Faces Risk of Dividend Suspension

KuCoinFlash

Release Time: 03/10/2026 11:47:00

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Summary

Peter Schiff pointed out a poor risk-to-reward ratio for Strategy’s high-yield STRC token, warning that the company’s decision to raise payouts to 11.5% to fund Bitcoin purchases may lead to a potential dividend suspension. Increasing STRC issuance is depleting cash reserves, risking a pause that could compel Michael Saylor to sell Bitcoin. Chaitanya Jain previously described STRC as a Bitcoin accumulation machine, but the strategy requires robust risk management to avoid cash flow problems.

Odaily Planet Daily reports: Gold advocate and economist Peter Schiff posted on X, warning that the current "pyramid" supporting Bitcoin is sustained by Strategy, a company that has raised the dividend yield of its perpetual preferred stock, STRC, to 11.5% (up from 10% in September last year) to ensure continued financing for Bitcoin purchases. As more STRC shares are issued, Strategy’s cash burn continues to rise, and if its cash reserves are depleted, it risks suspending dividends—forcing Michael Saylor to sell Bitcoin to meet dividend payments.

Previously, Chaitanya Jain, Head of Strategy, stated that STRC and Strategy would together form the "ultimate Bitcoin accumulation machine," a sustained and large-scale institutional buying pattern that could permanently alter the market structure of Bitcoin bear markets.

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