Peter Schiff Says Saylor Wiped 66% Off MicroStrategy Bitcoin Yield

Peter Schiff warned that Michael Saylor’s recent Bitcoin purchase has slashed MicroStrategy’s (MSTR) Bitcoin‑backed yield by roughly two‑thirds, calling the structure “the largest Ponzi in the world” and suggesting the common stock could eventually be worthless if the trend continues【2】.

Schiff’s criticism of the Bitcoin‑backed capital structure

Schiff, a long‑time gold advocate, reiterated on Anthony Pompliano’s podcast that MicroStrategy’s variable‑rate perpetual preferred stock (STRC) is “financed by a pure Ponzi scheme” and warned that a collapse could occur if fresh capital stops flowing into the security【2】. He argued that the “excessive speculation” surrounding the Bitcoin‑backed yield could leave common shareholders with nothing, echoing his broader skepticism of crypto‑linked equity instruments【3】.

Market context and price dynamics

Bitcoin has been trading near $63,000, down about 2% in the past 24 hours, and sits well above the $50,000 support level that Schiff cited as a potential trigger for a broader market leg down【3】. The broader crypto market is down roughly 45% over the past year, reflecting the same risk concentration that Steve Eisman highlighted for AI‑related assets【1】. Meanwhile, STRC’s price closed near $86, still more than 13% below its $100 par value, underscoring the gap between market price and the theoretical Bitcoin‑backed value it promises【3】.

Institutional exposure and retail sentiment

Saylor highlighted that STRC has become the largest holding in three major U.S. preferred‑stock ETFs, together holding $756 million, which he framed as validation for the Bitcoin‑backed product’s institutional appeal【3】. However, retail ownership of STRC fell from 78% in March to 71% by July, while sentiment on Stocktwits turned “bearish” and activity levels dropped to “extremely low,” suggesting waning retail enthusiasm despite growing institutional allocations【3】.

What to watch

• $50,000 Bitcoin support – a breach could intensify pressure on STRC and MicroStrategy’s common equity.
• STRC price vs. $100 par – continued discount may trigger further investor outflows if the gap widens.
• ETF holdings – any change in the three major preferred‑stock ETFs’ exposure to STRC could signal shifting institutional sentiment.

Schiff’s stark framing of Saylor’s Bitcoin purchase as a 66% yield erosion raises questions about the sustainability of MicroStrategy’s Bitcoin‑backed capital structure, especially if Bitcoin’s price falters or institutional demand wanes. The market will be watching whether the preferred stock can bridge the gap between its par value and market price, or if the “Ponzi” narrative gains broader traction.