“The strategy now has a completely different business model,” wrote Peter Schiff, a longtime non-coiner and critic of Michael Saylor and his company. “Instead of selling common and preferred stock and issuing debt securities to buy bitcoin, the new strategy is to sell bitcoin to pay interest and dividends, pay off debt, repurchase the shares sold, and hope that the price of bitcoin will increase significantly.”
“You who thought that selling 32 BTC caused a massive sell-off three weeks ago need to think again,” said Grant Cardone.
“Everyone was worried about Saylor going into liquidation,” Jeff Sekinger wrote. “Well, there it is. Here’s what it looks like. They will sell pieces of BTC at a loss to fund their credit products that are not collateralized by cash flow. So if BTC doesn’t appreciate, they will continue to sell at a loss.”
“I’m OK with the company moving in this direction,” Josh Mandell wrote. “Where the usual approach to dividend funding is to simply sell more common stock, choosing to sell a small amount of bitcoin essentially behaves like a common stock repurchase.”
“Strategy just sold about 1.5 months of dividend bonds in one week,” said Joe Burnett, an executive at Strive, another Bitcoin treasury company. “At this rate and with 0% BTC appreciation, the current dividend obligation is funded until 2056… With annual BTC appreciation of approximately 3.4%, today’s dividend obligation can be funded indefinitely.”
Finally, there is Phong Le, CEO of the strategy: “The strategy is evolving from unidirectional capital issuance to active capital management. »
