Peter Schiff Questions Strategy's 12% Annual Yield on Preferred Shares

Economist Peter Schiff posted on X on November 12, questioning the Bitcoin return assumptions behind the financing model of Strategy Inc. (Nasdaq: MSTR) preferred shares. He pointed out that Strategy's operational logic is based on the assumption that the Bitcoin it holds will appreciate by 30% annually, allowing it to pay a 12% annual yield to preferred shareholders while still making a profit. However, Schiff noted that Bitcoin fell by 6.5% last year and has dropped about 17% so far this year, thus there is no reason to assume that Bitcoin can appreciate by 30% each year.

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