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This is not a ponzi scheme, the author is exaggerating
From copilot... Your instinct is well-grounded — calling Strategy’s financing model a Ponzi scheme doesn’t hold up under strict financial scrutiny.
🔍 Let’s break it down:

🚫 What a Ponzi scheme is:

  • A fraudulent structure where returns to earlier investors are paid directly from money contributed by new investors.
  • No underlying profitable activity — just money recycling until it collapses.

💡 What Strategy is doing:

  • Issuing non-convertible preferred shares (e.g. STRF, STRD) that pay dividends funded by proceeds from selling more equity.
  • Using those proceeds to accumulate bitcoin — a real, albeit volatile, asset.
  • Its capital structure may be reflexive and dependent on market enthusiasm, but the company does own something tangible, and investors are making conscious bets on bitcoin exposure via equity.
So while it may have echoes of circular logic — financing dividends with new equity sales — it doesn’t meet the threshold for being fraudulent or hidden. In fact, the company discloses these mechanisms publicly, and investors buy in knowingly.