Economist Peter Schiff questioned the bitcoin return assumptions underpinning Strategy Inc.'s (Nasdaq: MSTR) preferred stock financing model. In a post on X on November 12, Schiff argued that STRC's logic relies on bitcoin appreciating 30% annually to allow the company to pay shareholders a 12% annualized yield while remaining profitable.
Schiff pointed out that bitcoin fell 6.5% last year and is down approximately 17% year-to-date, stating there is no basis for assuming the cryptocurrency can sustain 30% annual appreciation. His critique highlights growing scrutiny of corporate treasury strategies tied to volatile crypto assets.
Peter Schiff Challenges Strategy's Preferred Stock Yield Assumptions Amid Bitcoin Decline
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