Schiff Warns Of MicroStrategy's 'Death Spiral': Says Dividends Can Just Disappear

Benzinga11-19

Peter Schiff has reignited his feud with the Bitcoin (CRYPTO: BTC) world — this time taking direct aim at Michael Saylor and MicroStrategy Inc's (NASDAQ:MSTR) capital structure. In a flurry of posts ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2584489950?lang=en_US&edition=fundamental","thumbnail":"https://www.benzinga.com/files/images/story/2025/11/18/MicroStrategy-Stock-Jump_1.jpeg","is_english":true,"pubTime":"2025-11-19 02:45","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2584489950","market":"us","top_or_hot":-1,"title":"Schiff Warns Of MicroStrategy's 'Death Spiral': Says Dividends Can Just Disappear","media":"Benzinga","content":"<div>\n<p>Peter Schiff has reignited his feud with the Bitcoin (CRYPTO: BTC) world — this time taking direct aim at Michael Saylor and MicroStrategy Inc's (NASDAQ:MSTR) capital structure. In a flurry of posts ...</p>\n\n<a href=\"https://www.benzinga.com/crypto/cryptocurrency/25/11/48933222/schiff-warns-of-microstrategys-death-spiral-says-dividends-can-just-disappear\">Source Link</a>\n\n</div>\n","source":"Benzinga","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Schiff Warns Of MicroStrategy's 'Death Spiral': Says Dividends Can Just Disappear</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSchiff Warns Of MicroStrategy's 'Death Spiral': Says Dividends Can Just Disappear\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-19 02:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/crypto/cryptocurrency/25/11/48933222/schiff-warns-of-microstrategys-death-spiral-says-dividends-can-just-disappear><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Peter Schiff has reignited his feud with the Bitcoin (CRYPTO: BTC) world — this time taking direct aim at Michael Saylor and MicroStrategy Inc's (NASDAQ:MSTR) capital structure. In a flurry of posts ...</p>\n\n<a href=\"https://www.benzinga.com/crypto/cryptocurrency/25/11/48933222/schiff-warns-of-microstrategys-death-spiral-says-dividends-can-just-disappear\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4596","symbol_name":"哈里斯概念","start_time":0,"source_url":"https://www.benzinga.com/crypto/cryptocurrency/25/11/48933222/schiff-warns-of-microstrategys-death-spiral-says-dividends-can-just-disappear","article_id":"2584489950","we_media_id":null,"thumbnails":["https://www.benzinga.com/files/images/story/2025/11/18/MicroStrategy-Stock-Jump_1.jpeg"],"rights":{"source":"Benzinga","url":"https://www.benzinga.com/crypto/cryptocurrency/25/11/48933222/schiff-warns-of-microstrategys-death-spiral-says-dividends-can-just-disappear","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2584489950","pubTimestamp":1763491511,"columns":[],"sourceInfo":{"source_id":"Benzinga","name":"Benzinga Cypto"},"weMediaInfo":null,"summary":"Peter Schiff has reignited his feud with the Bitcoin (CRYPTO: BTC) world — this time taking ","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4596":"哈里斯概念","BK4595":"比特币概念","MSTR":"Strategy","MSTX":"2倍做多MSTR ETF-Defiance","BK4600":"加密货币概念","BK4588":"碎股","STRK":"MICROSTRATEGY 8.00% SERIES A PERPETUAL STRIKE PFD","BK4023":"应用软件","BK4585":"ETF&股票定投概念","BK4516":"特朗普概念","BK4594":"比特币ETF概念","BK4601":"加密货币现货ETF"},"translate_title":"希夫警告MicroStrategy的“死亡螺旋”：称股息可能会消失","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MSTX":1.5,"STRK":0.6,"MSTR":1},"content_text":"Peter Schiff has reignited his feud with the Bitcoin (CRYPTO: BTC) world — this time taking direct aim at Michael Saylor and MicroStrategy Inc's (NASDAQ:MSTR) capital structure. In a flurry of posts on X, Schiff argued that the company's high-yield preferred shares, marketed as income products, are dangerously misunderstood by investors. \nTrack MSTR stock here.\n\n\nHis warning was blunt: \"Dividends are only paid if MSTR decides to declare a dividend… Undeclared dividends don't accumulate. They are lost forever.\"Benzinga reached out to MicroStrategy for comment but did not receive a response before publication.Read Also: Tether Just Did What Bitcoin Never Could — Become The World’s Shadow Central BankThe Yield That Isn't Really A YieldSchiff claims the core flaw is structural. Many income-focused funds have been buying the preferreds assuming they'll receive steady payouts. Schiff says that assumption is wrong. As he wrote, \"MSTR's business model relies on income-oriented funds buying its ‘high-yield' preferred shares. But those published yields will never actually be paid.\" He argues the shares function more like optional coupons at the company's discretion, not traditional cumulative preferreds where skipped payments accrue.That flexibility may look harmless today, but Schiff says it masks a financing model that could unravel fast. In his view, once fund managers realize that dividends \"will never actually be paid,\" they'll \"dump the preferreds,\" shutting down MicroStrategy's ability to issue more. That's when he believes the real trouble begins.Why Schiff Calls It A \"Death Spiral\"The phrase wasn't used lightly. Schiff argues MicroStrategy depends on selling more preferreds to maintain its strategy — and losing that channel would leave the company stranded. Without reliable income buyers, the firm's ability to raise capital dries up, the preferred market collapses, and the stock comes under pressure. To Schiff, it's the definition of a self-reinforcing unwind: fewer buyers lead to fewer declared dividends, which lead to even fewer buyers.He paired the critique with a broader attack on Bitcoin after the token slid below $90,000, noting it is \"down 40% priced in gold.\" For Schiff, MicroStrategy's structure and Bitcoin's drop are two sides of the same argument.Why It Matters To InvestorsSchiff's prediction is stark — he believes MicroStrategy could \"eventually go bankrupt.\" Whether investors agree or not, his attack zeroes in on the fine print of a financing vehicle many shareholders haven't fully examined. If sentiment shifts, the preferreds may become the market's next pressure point.Loading...Loading...Read Next: \nSchiff Vs. Saylor: Is Strategy’s Bitcoin Hoard A Golden Illusion?\nPhoto: PJ McDonnell / Shutterstock.com$BTCBitcoin - United States dollar$93313.351.32%OverviewMSTRStrategy Inc$210.647.79%Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-2","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.10","shortVersion":"4.35.10","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2584489950","isCrawlerRequest":true}