TL;DR:
- Monetary loss: MicroStrategy reported a internet lack of $12.54 billion on the shut of the primary quarter of 2026, influenced by a valuation adjustment of $14.46 billion in its digital property.
- Capital construction: The corporate has long-term debt of $8.2 billion and most popular fairness that rose to $9 billion in the identical interval.
- Dividend dedication: The STRC most popular inventory sequence maintains an annual yield of 11.5%, with a proposal to make bi-weekly funds beginning in July 2026.
Gold advocate Peter Schiff has intensified his criticism in opposition to MicroStrategy, calling its enterprise mannequin and its STRC most popular inventory a pure Ponzi scheme that might face an imminent collapse.
Yesterday @Saylor admitted that $MSTR would promote Bitcoin if wanted to pay the dividend on $STRC. I believe that kind of “dedication” is required to maintain the Ponzi going longer. However my guess is when the time comes, he’d droop the dividend and crash $STRC relatively than crash Bitcoin.
— Peter Schiff (@PeterSchiff) Could 6, 2026
Monetary Info and Schiff’s Thesis
In keeping with the first quarter 2026 monetary statements, MicroStrategy recorded an working lack of $14.5 billion. The corporate’s official report attributes these outcomes primarily to the drop in market worth of its Bitcoin holdings throughout stated interval. Given this situation, Schiff maintains that the dividend construction of the most popular shares will turn out to be unsustainable if the underlying asset doesn’t preserve a perpetual bullish development.
Knowledge from the most recent earnings name point out that the agency holds roughly 818,334 BTC. Schiff argues that Michael Saylor, the corporate’s chairman, will ultimately face a vital choice: liquidate treasury reserves or droop funds to most popular shareholders. In keeping with Schiff’s view printed on social media, the general public dedication to defend dividends is a software to lengthen confidence in what he describes as an accumulation mannequin that advantages early buyers on the expense of latest ones.
Money Circulate Sustainability and STRC Shares
MicroStrategy’s documentation reveals that the corporate has raised practically $11.7 billion in capital to this point in 2026. These funds have been used to increase its most popular inventory stack, which carries recurring dividend obligations. Schiff means that, within the face of a liquidity disaster, administration will select to let the worth of STRC fall relatively than promote its Bitcoin holdings to fulfill the coupons.
Schiff’s interpretation posits that the agency’s “Digital Credit score” mannequin will depend on the fixed skill to entice contemporary capital. The supply signifies that STRC shares are designed to commerce close to a par worth of $100, however Schiff initiatives that any suspension within the cost circulation would set off a profound unfavorable revaluation throughout the corporate’s whole capital construction.
Analysts following Saylor’s technique observe that, as of Could 2026, the corporate has managed to keep up liquidity by at-the-market (ATM) choices. Nonetheless, the Q1 earnings report confirmed an EPS of -$38.25, a determine that, based on the Investing report, was 101% under analyst forecasts, including stress to the entity’s financing mannequin.
