At 0% BTC appreciation, MSTR can pay dividends for 43 years by gradually selling BTC.
They sell new STRC stock โ get cash โ buy more Bitcoin with it. This makes the pile bigger and adds a bit more dividends to pay, but the ratio stays very low. So the โ2.3% is enoughโ magic still works.
Put another way as MSTR issues STRC, they build their pile of BTC, and only owe are only 2.3% of the value of their whole Bitcoin pile. So if Bitcoin goes up just 2.3% or more per year:
โThe growth pays for all the dividends
โThe pile never shrinks
โThey can pay forever
10% of my Portfolio is STRC and I very much enjoy seeing the big dividend every month... it is my new 60/40 ie 90/10
90% EXTREME AI AND CRYPTO Leverage, 10% STRC Bond. :D
@HenrikZeberg Why? He can sell Different classes of share and buy back his stock. They may decide to sell if it warranted but no need to be a forced seller. He now has the power to effectively sell Bitcoin bonds to buy back his stock or Bitcoin
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