Summary
- Michael Saylor, executive chairman of Strategy, said the company could effectively fund dividends indefinitely if Bitcoin’s long-term rate of appreciation exceeds 3.3%.
- Saylor said one of Strategy’s most misunderstood metrics is Bitcoin break-even annual recurring revenue (ARR).
- He said that if Bitcoin rises more than 3.3% over the long term, Strategy can fund Stretch dividends indefinitely through Bitcoin capital gains.
Michael Saylor, executive chairman of Strategy, said the company could effectively fund dividends indefinitely if Bitcoin’s long-term rate of appreciation exceeds 3.3%.
Writing on X on July 8, Saylor said one of Strategy’s most misunderstood metrics is Bitcoin break-even annual recurring revenue, or ARR.
If Bitcoin rises more than 3.3% over the long term, Strategy can fund Stretch dividends indefinitely through Bitcoin capital gains, he wrote. Stretch is a perpetual preferred stock that Strategy has issued since the second half of last year to raise funds for Bitcoin purchases.
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