Schiff vs Saylor: Bitcoin-Driven Capital Structure Under Fire
Peter Schiff, a long-time gold bull and critic of Bitcoin, has renewed his attack on Michael Saylor's Strategy. According to Schiff, Strategy's common stock equity will 'eventually' be worthless due to its Bitcoin-driven capital structure promoting 'excessive speculation'. This could leave common shareholders with nothing.
On the other hand, Saylor points out that Strategy's variable-rate perpetual preferred stock (STRC) has become a top holding in three major US preferred stock exchange-traded funds (ETFs), including BlackRock's iShares Preferred and Income Securities ETF (PFF), Virtus InfraCap's US Preferred Stock ETF (PFFA) and VanEck's Preferred Securities ex Financials ETF (PFXF). These institutions now hold $756 million across the three ETFs.
STRC is still trading below its par value of $100, but has gained institutional demand. However, retail investor sentiment for STRC remains bearish, with only 71% ownership by individual investors in July, down from 78% in March.