Recently, Michael Saylor's company Strategy (formerly MicroStrategy) announced the issuance of a new perpetual preferred stock STRF ("Strife") with an annual dividend of up to 10%. The money will be used for company operations and to purchase more Bitcoin.
While some see this as an innovative way to accumulate Bitcoin, some experts warn that this high dividend strategy could put the company in trouble if the price of Bitcoin plummets. Here are the different views of supporters and opponents!
Opponents: High dividend pressure, where will the cash come from?
According to official news, STRF's dividend is as high as 10% per year, with the first cash dividend scheduled for June 30, 2025, and then paid quarterly. The problem is that Strategy's balance sheet relies heavily on Bitcoin rather than traditional sources of income. This means that if the price of Bitcoin falls, it may be difficult for the company to maintain high cash dividends.