BroadChain learned that at 18:06 on April 27, according to NewsBTC, Strategy's preferred stock STRC is trading below its $100 face value, raising market doubts about its ability to continue purchasing Bitcoin. Despite ongoing criticism, Saturn has invested $18 million in STRC, bringing its total investment to $33 million. STRC offers an 11.5% annualized yield, with funds directly used to buy Bitcoin.
Michael Saylor posted a tweet on April 26 with the message "The Beat Goes On" accompanied by an orange dot chart, which, per usual practice, signals a new round of Bitcoin acquisitions. Strategy currently holds over 815,000 Bitcoins, having just completed a $2.54 billion purchase last week.
Critic Peter Schiff labeled STRC as "the most obvious Ponzi scheme," arguing that its 11.5% yield requires Bitcoin to appreciate by 2% annually to cover costs, but if STRC issuance increases, the required Bitcoin price appreciation would be higher. He warned of potential legal actions and a death spiral.