[Digital Today reporter Jinju Hong] Peter Schiff (피터 시프), a prominent cryptocurrency sceptic, criticised the fund-management structure of bitcoin-holding company Strategy as a “mid-stage Ponzi scheme.”

U.Today, a blockchain media outlet, reported on Monday that Schiff took issue with Strategy’s shift to selling some of its bitcoin to pay dividends, corporate bond interest and debt repayments.

The issue is a change in Strategy’s business model. Schiff said that in its early bitcoin accumulation phase, Strategy raised funds through convertible bond issuance and stock sales to buy bitcoin, but he now sees the cash flow as having reversed. He said Strategy “now has a completely different business model,” and claimed it is moving from a structure of selling common and preferred shares and issuing debt to buy bitcoin to one in which it sells bitcoin to pay interest and dividends, repay debt and buy back shares it previously sold.

Schiff warned the structure could add further pressure to the bitcoin price. He said Strategy bought bitcoin worth about $17 billion since October 2025, yet the price saw a sharp correction. “If bitcoin was that weak even though Strategy bought $17 billion, it could get weaker when it sells $3.25 billion and has to make additional sales to maintain at least dollar reserves,” he said.

Schiff singled out the yield on Strategy’s preferred product, STRC, as key to the market reaction. He said its current yield has jumped to about 15 percent due to a price decline. He also claimed that “to bring the price back to $100, Strategy has to raise the dividend rate.” His logic is that the lower the preferred price falls, the higher the dividend needed, and that raising funds for those dividends could increase the scale of bitcoin sales.

Schiff said the structure could lead to a vicious cycle. A fall in the preferred share price would increase the dividend burden, the dividend burden could lead to additional bitcoin sales, and those sales could in turn weigh on the bitcoin price. He warned that as Strategy’s financial operations and the bitcoin price become intertwined, downside pressure could intensify.

He also offered a bitcoin price outlook. Schiff said new selling pressure could put bitcoin’s technical support level at risk. “The $58,000 support level may no longer hold,” he said, adding, “If that area breaks, bitcoin could plunge below $50,000 and test the August 2024 low.”

The remarks focus less on Strategy’s bitcoin holding strategy itself than on how it links its holdings to cash flow. If the structure of selling bitcoin to fund dividends and debt repayment continues, Strategy’s fund management and bitcoin supply and demand are expected to emerge together as points for the market to watch.