Peter Schiff Warns Retirees Are at Risk as Strategy’s Preferred Stock Slides
Gold advocate Peter Schiff warned Friday that ordinary retirees are already feeling the burn from Strategy Inc.’s preferred shares, Benzinga reported. Schiff said investors who parked retirement savings into STRC, the company’s Strategy preferred stock, have watched the instrument drop more than 7% from its $100 par value target to roughly $92.62.
Schiff Takes Aim at Strategy’s Capital Structure
Writing on X, Schiff quipped that Strategy founder Michael Saylor should retain legal counsel quickly. He added that some retirees holding the preferred shares may be forced back into the workforce to cover the shortfall.
The jab arrives as STRC has broken a rising trendline that had been intact for nearly ten months. The line stretched from lows around $81 in August 2025 all the way through a string of higher highs before breaking down this week.
Grayscale Flags a Compounding Problem
Grayscale Head of Research Zach Pandl outlined a negative feedback loop in a Thursday note, Benzinga reported. When STRC trades below par, Strategy must lift its dividend rate to coax buyers back. Higher dividend obligations, however, tighten cash flow. That can force the firm to liquidate Bitcoin holdings. Selling Bitcoin depresses its price, which in turn drags STRC even further below par.
Pandl wrote that Strategy’s leveraged business model is under measurable stress. He added that the company’s capacity to accumulate more Bitcoin is constrained at current share prices for both STRC and its common equity MSTR.
Strive CEO Defends the Bitcoin Sale
Strive Asset Management CEO Matt Cole pushed back against the harshest criticism. Speaking on Anthony Pompliano‘s podcast, Cole called Strategy’s recent 32-Bitcoin disposal a logical portfolio decision rather than a sign of distress. He pointed out that Strive told investors at its own SATA IPO that it reserved the right to sell when conditions warranted.
Cole urged Strategy to adopt similar flexibility instead of binding itself to a “never sell” mantra. He also argued that critics forecasting a cascade of future sales will be proven wrong within twelve months, predicting the firm will remain a net buyer going forward.
Cole cited both SATA and STRC as evidence that digital credit instruments can hold up in a downturn. Both have logged positive total returns since launch even as Bitcoin has shed more than half its peak value, he claimed.
What the Chart Suggests Next
The broken trendline now acts as overhead resistance for STRC. A Bitcoin stabilisation could lift the preferred shares back toward the $96-$98 range relatively quickly. A continued slide in Bitcoin, however, points toward the December 2025 consolidation zone near $86-$88 as the next meaningful support level to monitor.
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