In an escalating war of words, prominent gold advocate and Bitcoin skeptic Peter Schiff has called for a formal SEC investigation into Michael Saylor and his company, Strategy (formerly MicroStrategy).
Schiff alleges that Saylor’s aggressive Bitcoin accumulation strategy – now fueled by a complex new financial instrument known as STRC – is inherently deceptive.
Schiff’s primary target is the company’s use of perpetual preferred stock to fund Bitcoin purchases. He urges that the structure which promises monthly dividends with high yields is a house of cards designed to manipulate the market.
Schiff warned on social media, “It’s so misleading to constitute fraud” and told followers to “Get ready for the lawsuits when the dividends are cancelled and the stock craters.”
He has frequently labeled Saylor “the biggest fraud on Wall Street” comparing the company’s leveraged model to a Ponzi scheme.
Despite the heavy fire, Saylor remains defiant, continuing to raise billions to expand his cache of over 780,000 BTC.
Dismissing the calls for regulatory intervention, Saylor recently remarked, “If this makes you uncomfortable, it’s working.”
While the SEC has not confirmed an active probe, the high short interest in the stock suggests the market is bracing for a showdown.
