MicroStrategy Stock Price Dips As Peter Schiff Calls MSTR a Ponzi Scheme

Key Insights:

• The MicroStrategy (MSTR) stock fell after the company reported a $14.5 billion Q1 2026 operating loss.
• Peter Schiff called Strategy’s STRC offering the “most obvious Ponzi scheme.”
• Schiff warned that Strategy’s dividend model may fail if Bitcoin prices stop rising.

Michael Saylor’s MicroStrategy, now known as Strategy, is facing fresh criticism from Peter Schiff. As the Bitcoin critic has once again targeted the BTC treasury company, the MicroStrategy stock price took a dive, with the shares failing to maintain momentum.

MicroStrategy Stock Price Slips Amid Peter Schiff’s Criticism

In a recent X post, Bitcoin critic Peter Schiff took aim at Michael Saylor’s MicroStrategy. He called the company’s preferred stock offering the “most obvious Ponzi scheme.”

Schiff wrote, “I think that type of ‘commitment’ is needed to keep the Ponzi going longer.”

Schiff, who has always been a critic of Bitcoin and Strategy’s BTC accumulation tactics, raised concerns over the sustainability of the company’s financial strategy.

He added that the scheme would see an imminent collapse. His words read, “But my guess is when the time comes, he’d suspend the dividend and crash STRC rather than crash Bitcoin.”

Driven by this critical statement, the MicroStrategy stock price has seen a notable decline. The MSTR stock was trading at around $179.84, down nearly 4% at the market close.

The MicroStrategy stock price closed at $186 in the prior session.

However, the MSRT stock has seen a notable uptick of 18% over the past five days. Despite a 21% decline over the past six months, the MicroStrategy stock has surged by about 46% in a month.

Peter Schiff Questions Strategy’s Dividend Model

It is worth noting that the latest dip in the MicroStrategy stock price comes after the release of the company’s Q1 2026 financial report. As per the report, the company posted an operating loss of $14.5 billion. This is mainly due to the significant decline in the Bitcoin price.

Since the October 2025 crypto market crash, the BTC price has been facing increased volatility. The ongoing Middle East tensions have further added pressure to the market, pushing the Bitcoin price to severe lows.

This has caused the shares of major Bitcoin treasury companies like Strategy to see substantial losses. Following the earnings report, Peter Schiff argued that the company’s preferred share dividend model may not survive if Bitcoin fails to continue rising over the long term.

He believes MicroStrategy chairman Michael Saylor could eventually face a difficult choice between selling Bitcoin reserves or suspending dividend payments to shareholders.

Schiff also claimed that the company’s public commitment to protecting dividends is aimed at maintaining investor confidence.

He describes it as a system that mainly rewards early investors. He added in a separate X post, “STRC is a pure Ponzi. Bitcoin is kind of a hybrid of a Ponzi, a pyramid, and a chain letter.”

MicroStrategy CEO’s Defense of STRC and Schiff’s Rejection

It is worth noting that the Bitcoin critic’s comments came after Strategy CEO Phong Le defended the MicroStrategy Perpetual Stretch Preferred Stock (STRC) during an interview on the Paul Barron show.

Le said the company uses the money raised from the offering to buy more Bitcoin, not to directly pay dividends to investors. According to him, the company has been fully transparent about how the funds are being used.

In response, Schiff said transparency does not change his opinion. In a post on X, he argued that he never accused MicroStrategy (MSTR) of hiding anything.

Instead, he claimed the company is openly operating a system that depends heavily on continued investor confidence and the rising Bitcoin price.

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