Strategy’s Michael Saylor explains how selling 1.4% of assets can fund Bitcoin dividends indefinitely

• Strategy Inc. is using its STRC preferred stock, representing 1.4% of assets, to fund regular Bitcoin dividends.
• The company sells a small portion of its Bitcoin holdings to finance these dividends, with a strategy to acquire 10-20 BTC for every BTC sold through capital raises.
• This approach aims to increase the 'Bitcoin per share' metric and offers income-focused investors a novel way to gain Bitcoin exposure.

Topics: Asset types, Institutional adoption, Yield performance, Equity, Asset manager initiatives, Private credit high yield

Tags: #michaelsaylor #strategyinc #bitcoindividends #strcpreferredstock #bitcoinpershare #115annualizedyield #incomefocusedinvestors #treasurymanagement #assetallocation #cryptostrategy

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Strategy's investors are may be rotating out of its preferred stock for another crypto rival

Strategy's bitcoin-backed preferred stock remains well below par value as concerns over dividend coverage and stronger competition from Strive's SATA.

• Strategy's bitcoin-backed preferred stock (STRC) is trading significantly below its par value due to concerns over dividend coverage and competition.
• Investors are increasingly favoring Strive's SATA, which offers a higher yield, daily dividends, and a debt-free structure.
• The widening spread between STRC and SATA suggests a potential need for STRC to increase its dividend rate to regain investor demand.

Topics: Asset types, Institutional adoption, Yield performance, Financial instruments, Asset manager initiatives, Treasury bond yields

Tags: #strategyspreferredstock #strivessata #bitcoinbacked #parvalue #dividendcoverage #higheryield #debtfree #convertibledebt #annualizedyield #incomefocusedinvestors

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