Bitcoin (CRYPTO: BTC) critic Peter Schiff has a question for Strategy (NASDAQ: MSTR): can the company really keep paying out roughly 12% a year on its preferred stock?
His answer leans no. Schiff claimed the investment case for Strategy's Stretch preferred stock (NASDAQ: STRC) depends on Bitcoin appreciating by 30% annually. That's a tall order, and Bitcoin's recent performance is a major reason for skepticism.
"Last year Bitcoin lost 6.5%. So far this year it's losing 17%. There's no basis to assume 30%," Schiff said in an X post on Thursday.
The company's Bitcoin-focused business model faces risks if the asset fails to deliver the strong annual returns investors expect. Schiff's latest criticism follows his Nov. 10 warning that Bitcoin could record its first consecutive annual declines in its trading history.
Is Gold Performing Better Than Bitcoin?
A trader challenged Schiff's criticism, claiming his gold fund delivered no returns between 2013 and 2025 and was negative in 2026.
Schiff rejected the claim, citing annualized returns of 14.95% in five years, a ten-year return at 12.72% and a 2026 year-to-date return of 1.45%. He did acknowledge that the fund could turn negative for the year following the day's trading.
"Gold has been trending up for 27 years. You don't have to believe me, just believe gold," he added.
