Schiff’s mouth is still poisonous, but the term “Ponzi” has already been overused in the crypto world—yet this operation of selling coins on Strategy to pay dividends really does have a bit of the “left hand pays right hand” feel. We’ll see how they manage to make it add up later.

CoinWorld news, Peter Schiff criticized Strategy's Bitcoin financing model, calling it a "medium-term Ponzi scheme." He pointed out that after selling 3,588 Bitcoins to meet dividend obligations for its digital credit securities plan, Strategy deviated from its original method of raising funds through stock and debt issuance to purchase more Bitcoin. Nevertheless, Strategy remains the largest publicly traded Bitcoin holding company, still holding 843,775 Bitcoins on its books. Schiff believes that the company's preferred stock structure could create more financial pressure under deteriorating market conditions, potentially forcing Strategy to raise dividends to maintain investor demand, which may increase its reliance on selling Bitcoin or raising additional funds.