Michael Saylor's company, Strategy Inc. (NASDAQ: STRC), saw its stock drop below $89.50 on Wednesday. Crypto analyst DonAlt criticized Strategy Inc.'s preferred stock from the same company (NASDAQ: MSTR), calling it "the worst Ponzi scheme" he has come across. Buyers who purchased the stock at $100 are now facing a loss of over 10%. DonAlt outlined the problematic cycle, explaining that Saylor purchases Bitcoin (CRYPTO: BTC), issues STRC shares, buys more Bitcoin with the funds raised, and as the average buy price increases, the Stock-to-Flow (S2F) ratio depegs. To adjust the ratio, Saylor sells Bitcoin below his average price, which in turn pushes Bitcoin's price down, leading to more Bitcoin sales. When the market starts to recover, more STRC shares are issued at higher Bitcoin prices, perpetuating the cycle with an increasing cost basis each time. Renowned investor Peter Schiff highlighted the immediate consequences of this cycle. The STRC stock closed at... (specific closing number not disclosed). More details can be found on Benzinga.com.