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Michael Saylor Says Just 2% Bitcoin Growth Covers MicroStrategy’s Dividends Forever

BeInCrypto
Michael Saylor states that MicroStrategy only needs a 2.05% annual Bitcoin growth rate to fund its preferred stock dividends indefinitely without issuing new shares.

Summary

Michael Saylor, Chairman of MicroStrategy, announced that the company requires only a 2.05% annual growth rate in its Bitcoin holdings to indefinitely cover preferred stock dividends, including its STRC instrument, which currently yields 11.5%. By maintaining a massive reserve of 766,970 BTC, the company aims to fund dividend payments through asset appreciation rather than dilution via new share issuance. This breakeven threshold is significantly lower than Bitcoin's historical performance, supporting the firm's ongoing strategy of aggressive Bitcoin accumulation.

(Source:BeInCrypto)