Economist Peter Schiff Criticizes Bitcoin's Reliance on Strategy's Financial Moves

Economist and gold advocate Peter Schiff recently commented on social media platform X, highlighting concerns about Bitcoin's current reliance on Strategy's financial strategies. According to Odaily, Schiff pointed out that Strategy has increased the dividend rate of its perpetual preferred stock, STRC, to 11.5%, up from 10% last September, to maintain its ability to finance and purchase Bitcoin. As STRC shares continue to be issued, Strategy's cash consumption is also rising, posing a risk of dividend suspension if cash reserves are depleted. This situation could force Michael Saylor to sell Bitcoin to cover dividend payments. Previously, Strategy's head of strategy, Chaitanya Jain, stated that STRC and Strategy together form the "ultimate Bitcoin accumulation machine." This ongoing and large-scale institutional buying approach could permanently alter the market structure of Bitcoin bear markets.