Strategy halts Bitcoin buys as financing tools falter, sparking Peter Schiff's 'Ponzi' claims before May 5 earnings.

MicroStrategy paused its Bitcoin purchases due to its preferred stock (STRC) trading below par and a strategic hold on equity sales ahead of its May 5, 2026 earnings call. This pause exposed vulnerabilities in the company's Bitcoin acquisition model, leading critic Peter Schiff to label it the "most obvious Ponzi scheme" because it relies on Bitcoin's price rising above 11.5% annually to cover dividends. Strategy's CEO defended the approach as transparent and backed by on-chain assets, but Schiff argued transparency doesn't negate the pyramid-like structure. Despite the pause, Strategy holds over 818,000 BTC at an average price below current market levels, keeping the portfolio profitable.