Strategy Inc. (NASDAQ:MSTR) executive chairman Michael Saylor has said that Bitcoin (CRYPTO: BTC) needs to appreciate by only 2.3% annually for the company to fund its STRC dividends indefinitely by selling small portions of its holdings.
The 2.3% Breakeven Threshold
Strategy posted a chart comparing two scenarios for its dividend funding model.
If Bitcoin does not grow at all, the company can still cover dividend payments for about 43 years using its current setup.
If Bitcoin grows by 2.3% annually, the gains from Bitcoin would fully offset dividend costs, meaning Strategy could theoretically fund dividends indefinitely without running out of value.
The breakeven annual rate of return is the minimum yearly Bitcoin growth needed for the strategy to sustain itself forever under the current capital structure.
Saylor Addresses Selling Bitcoin For The First TimeA
Saylor floated the idea during Strategy’s earnings …
