Strategy is bragging about “32 years of dividend coverage” from their Bitcoin reserve


Read that again
The coverage works by selling the Bitcoin
They pay 11.5% on their preferred stock. the software business makes $124 million a quarter. The dividends run $1.7 billion a year
The operating business doesn’t come close to covering it
So last month they sold Bitcoin for the first time since 2022. Broke the 5 year “never sell” rule ($2.5m worth) just to fund the dividend
> Issue preferred stock
> buy Bitcoin
> sell the Bitcoin at a loss to pay the people you issued the stock to
> issue more stock
the reserve was never a reserve
It’s a sophisticated Ponzi
BTC0.88%
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