Peter Schiff Invites STRC Investors to the Saylor Liability Buffet 🍽️

Bitcoin critic Peter Schiff has suggested that a specific group of STRC investors may have an "ironclad" case against Strategy and its co-founder Michael Saylor, arguing the executive could be exposed to fraud claims as the firm's preferred security slides to new lows. In an X post, Schiff said retirees who bought STRC last month and have already lost 15% of their principal could pursue legal action, provided they acquired the stock based on Saylor's promotion of its yield without disclosure of the underlying risk.

The remarks come as STRC trades around $86, down more than 2% on the day according to TradingView data, and notably below its $100 par value. Schiff described the security as "collapsing" and laid out the math behind the pressure on Strategy: at the current price, the implied yield stands at 13.5%, meaning Strategy would need to lift that yield to restore the share price to $100, make earlier investors whole and issue new shares. Under that scenario, he noted, buyers at $85.32 would receive a yield of 17.5%. Schiff added that Saylor may be guilty of fraud and carries significant liability to investors who stand to lose money as the stock declines further.