Peter Schiff Explains Why Michael Saylor Has No Easy Way Out as MSTR, STRC Plung

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Peter Schiff has warned Strategy's investors that Michael Saylor has no easy way out as the stock and its preferred stocks plummet.

In an X post, he argued that Saylor has no viable solution as his stocks continue to slide. In particular, he highlighted STRC, the popular preferred stock with an 11% dividend yield, which has suffered a sharp decline in recent weeks.

STRC, together with other preferred stocks like STRD, STRK, and STRF, have all plunged as investors worry about the sustainability of the dividend since Strategy's Bitcoin holdings don't generate any cash return.

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As such, the company has three potential solutions to continue paying its dividends. It can issue more debt, but this will be expensive as it has over $6.7 billion in debt. Alternatively, it can sell more shares, diluting its investors, or it can sell its Bitcoin.

Those of you who think @Saylor can solve the $STRC problem

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/peter-schiff-explains-why-michael-094500592.html)