Market Pulse: Peter Schiff Says Strategy’s STRC Plan Hurts MSTR Shareholders

Across major exchanges, fell about 7% after the company released second-quarter earnings, while Peter Schiff argued that its STRC financing priorities increasingly disadvantage MSTR shareholders.

The dispute highlights competing views over preferred-stock stability, bitcoin reserves, and common-stock value.

(Nasdaq: MSTR) on July 31 after the company released its second-quarter earnings and Peter Schiff challenged its stated objective of keeping STRC near its $100 stated value.

The criticism shifted attention from bitcoin accumulation toward whether Strategy’s preferred-stock commitments could weaken returns, liquidity, or capital access for common shareholders.

Schiff wrote in an X post on July 31 that Strategy’s STRC policy creates a direct conflict between preferred investors and holders of the company’s publicly traded common stock: “Bitcoin is breaking down today, with $MSTR leading the way, down 7% following Saylor’s morning X post that Strategy’s ‘primary corporate objective’ isn’t to maximize shareholder value but ‘for $STRC to trade at $99–$100 over time.’ In other words, MSTR shareholders are screwed.” His conclusion represents an investment opinion, while Strategy describes the STRC objective as part of its broader digital-credit capital framework designed to stabilize its capital structure.

The disagreement centers on whether protecting preferred securities strengthens the company’s funding model or redirects resources that could otherwise support MSTR shareholders.

Company disclosures describe STRC’s variable dividend and $100 trading objective.

STRC is Strategy’s Nasdaq-listed perpetual preferred stock, marketed as Stretch, which currently pays a 12% annual cash dividend in semi-monthly installments.