Schiff Warns Strategy Shareholders May Lose Everything

Peter Schiff has made it clear he's not a fan of Strategy, citing its Bitcoin-driven capital structure as promoting 'excessive speculation'. According to Schiff, this could ultimately leave common shareholders with nothing. In a podcast appearance, Schiff said that 'eventually the common stock equity will be worthless for Strategy.'

However, Michael Saylor, CEO of Strategy, sees things differently. He pointed out that STRC, the company's preferred stock, has become the biggest holding in three major US preferred stock ETFs: 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).

The institutional adoption of STRC has grown, with $756 million in holdings across the three ETFs. However, Schiff remains bearish on Strategy's common stock, warning that a break below $50,000 could trigger a deeper decline toward the $20,000-$30,000 range for Bitcoin.