MicroStrategy announced this morning that its reserve of 649,870 Bitcoins is sufficient to cover 71 years of dividends at the current BTC price, “and any rise in the price of Bitcoin exceeding 1.41% per year will completely offset our annual dividend expenses.”
However, despite having such a strong “balance sheet”, the S&P 500 index refuses to include it, and now MSCI may also kick Strategy out of the main index. Once the dust settles, the crypto industry could lose billions of dollars in funding.
According to MicroStrategy data:
BTC holdings: 649,870 BTC
Valuation benchmark: $87,000/BTC
BTC total value: 56 billion dollars
Annual dividend coverage: 700 million dollars
Total debt: 8.2 billion USD
The dashboard shows that under the current Bitcoin price assumption, the dividends can indeed be maintained for 71 years.
A 1.41% annual BTC appreciation rate is the company's breakeven point, where the growth of BTC alone can cover dividends without tapping into the principal. However, it is important to note that no auditors or third-party analysts have verified the so-called 71-year claim. Besides the dashboard, no detailed assumptions have been published. MicroStrategy itself describes these as model predictions rather than guarantees.
However, Daniel Muvdi, the market director of Quantfury and founder of Bitfinanzas, strongly questions MicroStrategy's claim of “71 years of dividend coverage.” He believes there is a fundamental flaw in the logic of using Bitcoin to pay dividends.
Muvdi believes that any Bitcoin liquidation would immediately trigger a significant sell-off in MSTR's stock price, as the market closely monitors the Bitcoin held by the company and views it as a core value driver. He questions whether investors can tolerate the company “destroying Bitcoin” to pay dividends and points out that such a move would undermine market confidence and exacerbate downward pressure on the stock price. In his view, this statement is not only unrealistic but also misunderstands the market's valuation of MicroStrategy and its response to changes in its Bitcoin reserves. (CCN)
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
A certain whale deposited 1,102 BTC into a certain CEX, with an unrealized loss of approximately 55.6 million dollars.
Gate News message. On March 30, an on-chain analytics platform monitored and showed that a whale address deposited 1,102 BTC into a certain CEX, worth approximately $74.21 million. This address bought this batch of BTC 8 months ago at an average price of $117,770. Based on the current price, this transfer is in an unrealized loss of about $55.6 million, a drawdown of 43%.
GateNews12m ago
Bitcoin Volatility Spikes as Trump Brags for Hitting Big Targets in Iran
After an unexpectedly calm weekend in which its price stood between $66,000 and $67,000, bitcoin went on a micro wild ride in the early hours on Monday, dipping to a new monthly low before it jumped toward $68,000.
This volatility ensued after Trump’s latest comments on the US/Israel vs Iran war, w
CryptoPotato21m ago
Bitcoin Traders Split Strategy: Short Rallies, Buy the Dip
_Trader holds BTC shorts from $120K and $72.8K while adding to spot positions during the decline._
_Bitcoin has dropped about 51% from highs, with an estimated 10–15% downside remaining._
_Strategy combines shorting at range highs and spot buying, with a projected 4–6 month bottom
LiveBTCNews24m ago
$12 billion short vs $3 billion long: Bitcoin may face an epic short squeeze.
The Bitcoin futures market currently has short positions of about $12 billion, while long positions are only $3 billion. Market sentiment is cautious, and risk is significant. High leverage and a heavy short-selling strategy could lead to sharp market volatility, and there is also a risk of a short squeeze. Key support and resistance levels will determine the next direction of price action, and the market is currently in a sensitive window.
GateNews24m ago
Bitcoin enters "Facebook explosion period"? Analysts: Users may welcome a threefold growth window
Bitcoin is undergoing a crucial phase of adoption, gradually shifting from a "niche asset" to a mainstream financial asset. Analysts point out that the "detagging" process of Bitcoin has attracted more institutional investors, and the market structure is undergoing deep changes. The number of global Bitcoin holders has reached 106 million, and spot ETFs are driving capital inflows, indicating that its growth potential remains enormous.
GateNews28m ago
Last week, Bitcoin spot ETFs saw a net outflow of $296 million, with BlackRock's IBIT experiencing a net outflow of $158 million.
Last week, Bitcoin spot ETFs saw a net outflow of $296 million, with BlackRock's IBIT experiencing a net outflow of $158 million. The largest net inflow was from Fidelity's FBTC, totaling $46.825 million. As of the time of writing, the total net asset value of the ETFs is $84.77 billion.
GateNews29m ago
