Svmuu News: Gold advocate and economist Peter Schiff posted on platform X, warning that the Bitcoin "pyramid" is currently propped up by Strategy. The company has raised the dividend rate on its perpetual preferred stock STRC to 11.5% (it was raised to 10% last September) to ensure it can continue financing and buying Bitcoin. As STRC shares are continuously issued, Strategy's cash burn is also steadily increasing. If cash runs out, it will face the risk of suspending dividends, and Michael Saylor would then have to consider selling Bitcoin to pay them.
Previously, Strategy's Head of Strategy, Chaitanya Jain, stated that STRC and Strategy together would form the "ultimate Bitcoin accumulation machine." This continuous and large-scale institutional buying model may permanently alter the market structure of Bitcoin bear markets.