🔥 Huge Controversy Surrounding MicroStrategy: Is It a Ponzi Scheme? 🔥
In recent days, discussions have erupted around MicroStrategy (MSTR) led by Michael Saylor, after some online investors described it as a "Ponzi scheme" due to the way it pays dividends to preferred investors using the issuance of new shares.
What's the story?
Andy Constan stated that MicroStrategy's use of the concept of "profits" to evaluate capital gains from Bitcoin is 100% fraudulent, arguing that the company relies on new investors to pay profits to previous investors.
Lyn Alden responded that the comparison between Bitcoin profits and traditional profits is not accurate, but she does not consider it a fraud, noting that the company complies with laws and pays all dividends on time and discloses all its data to official bodies.
💡 The key point in the debate: Does paying dividends from the proceeds of issuing new shares place the company within the definition of a Ponzi scheme? The debate continues among investors and followers on Reddit, YouTube, X, and Nostr.
🔍 Summary:
The company has a series of perpetual preferred shares that continuously pay dividends in dollars.
Many investors and experts believe that MicroStrategy is not a Ponzi scheme, but the discussion remains heated online.
