Is Strategy The 'Worst Ponzi Ever'? Critics Warn Saylor's STRC Play Could End Badly - Strategy (NASDAQ:MS

Michael Saylor's (NASDAQ:STRC) dropped below $89.50 Wednesday as crypto analyst DonAlt called Strategy Inc.'s (NASDAQ:MSTR) preferred stock "the worst Ponzi" he has ever seen, with buyers who paid $100 already down over 10%.

DonAlt Lays Out The Death Loop In Plain Terms DonAlt posted the full breakdown on X: Saylor buys Bitcoin (CRYPTO: BTC), issues STRC, buys more Bitcoin with proceeds, average buy price rises.

When the market drops, STRC depegs, Saylor sells Bitcoin below his average to repeg it, which pushes Bitcoin lower, forcing more Bitcoin sales.

When the market recovers, he issues more STRC at higher Bitcoin prices and the cycle repeats with a higher cost basis each time.

Peter Schiff added the immediate damage.