BroadChain News, April 26, 19:06, according to BeInCrypto, economist Peter Schiff warned that MicroStrategy (now renamed Strategy) is heading towards a "death spiral" with its Bitcoin-backed yield strategy, and the issued STRC preferred shares could threaten MSTR stock price and Bitcoin itself. Strategy currently holds 815,061 BTC, but STRC has an annualized dividend yield of 11.5%, paid monthly.
Schiff pointed out that Bitcoin does not generate cash flow, so the company must either sell BTC to pay dividends or continuously issue STRC to attract new buyers, but demand for the latter may shrink. Since STRC was launched in July 2025, its dividend yield has risen from 9% to 11.5%, raising approximately 50,792 BTC. If demand for STRC cools, Schiff predicts it will force the company to sell BTC, depressing prices and eroding net asset value.
Strategy CEO Michael Saylor countered, stating that the company has performed well in the long term and has a $42 billion market financing plan.