"STRC a low-risk product for retirees?"...Peter Schiff urges SEC investigation into Saylor's remarks

▲ Peter Schiff, Michael Saylor, Bitcoin (BTC)/AI Generated Image

Peter Schiff, a prominent critic of Bitcoin (BTC), argued that the U.S. Securities and Exchange Commission (SEC) needs to conduct an anti-fraud investigation against Michael Saylor and Strategy. The key issue is whether Strategy's perpetual preferred stock, STRC, was referred to as a suitable product for retirees seeking principal protection and stable income.

U.Today reported on May 11 (local time) that Schiff criticized Saylor's public statements and urged an SEC investigation. Schiff criticized Saylor for allegedly stating that STRC is suitable for retirees who do not want to lose principal and whose main investment goals are low-risk asset preservation and income generation.

Schiff categorized STRC as a high-risk product. He argued that Saylor's remarks could violate SEC marketing and anti-fraud regulations. He also warned that Bitcoin does not generate profit and relies entirely on the influx of new buyers, adding that Saylor's future public statements could serve as grounds for investor lawsuits against Strategy.

Saylor's side has a different stance. According to U.Today, Saylor explained that Strategy's structure is fundamentally different from a financial pyramid scheme and is closer to a development business. The company can selectively sell Bitcoin to make STRC-related payments, but it maintains the condition of remaining a net buyer, meaning its holdings at year-end will not be less than at the beginning of the year.

The core principle is "not to be a net seller." Saylor presented a structure where if 1 BTC is sold, an additional 10 to 20 BTC are purchased on top of it. This is interpreted as a new operating method to manage both payment obligations and asset accumulation simultaneously, contrary to the existing image of never selling Bitcoin.

Saylor also cited market liquidity as a basis. He believes that the Bitcoin market can absorb $100 million to $200 million worth of transactions per hour without significant price impact, and that global macroeconomic factors such as the Federal Reserve's tightening monetary policy and Middle East tensions will support capital inflows into digital assets in the long term.

While the debate intensifies, Strategy's STRC structure is regaining momentum in the real market. U.Today reported that STRC recovered its $100 par value after 18 days of volatility. As STRC regained its equilibrium, trading volume immediately increased, and Strategy absorbed approximately 322 additional BTC on Monday alone.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*