The stock price of Strategy Inc. (NASDAQ: STRC) fell below $89.50 on Wednesday, following DonAlt's criticism of their preferred stock as being "the worst Ponzi" he has encountered. Investors who bought at $100 are already facing a loss of over 10%. DonAlt outlined the risky cycle, where Michael Saylor of Strategy Inc. purchases Bitcoin (CRYPTO: BTC), issues STRC, reinvests in Bitcoin, causing the average purchase price to increase. This leads to a situation where, during market downturns, STRC loses value, prompting Saylor to sell Bitcoin at a loss to stabilize STRC, in turn pushing Bitcoin prices lower. When the market rebounds, more STRC is issued at higher Bitcoin prices, perpetuating the cycle with an escalating cost basis each time. Analyst Peter Schiff highlighted the immediate negative consequences of this strategy. The day ended with STRC closing at... For further details, visit Benzinga.com.