Saylor says Bitcoin gains can fund STRC dividends at 3.3% growth

Michael Saylor argued Bitcoin's capital gains can cover Strategy's preferred stock dividends forever if the asset grows just 3.3% annually — a claim Peter Schiff immediately challenged.

Michael Saylor, executive chairman of Strategy Inc., said Bitcoin's capital gains can theoretically fund dividends on the company's perpetual preferred stock indefinitely if the cryptocurrency grows at more than 3.3% annually.

"Bitcoin capital gains can cover STRC dividend obligations indefinitely at a 3.3% annualized rate of return," Saylor posted on X Tuesday, attaching a chart projecting 31 years of dividend coverage for the company's Perpetual Stretch Preferred Stock (NASDAQ:STRC).

The claim comes as Strategy faces mounting pressure to service its Stretch preferred stock, which carries a 12% dividend yield after a recent 50-basis-point increase. The company sold 3,588 bitcoin for $216 million last week — its largest-ever liquidation — to replenish dollar reserves for those payments, according to an SEC filing Monday. STRC traded at $89.51 on Monday, well below its $100 par value, implying an effective yield of about 13.4% for new buyers. Strategy's common stock (MSTR) closed at $101.20, up 0.6% on the day.

Peter Schiff, a longtime Bitcoin critic and gold advocate, pushed back on Saylor's math, arguing that relying on future price appreciation to cover current obligations assumes an uninterrupted uptrend. "If Bitcoin falls or stagnates, the math collapses," Schiff said on X. "Capital gains are not guaranteed. Dividends are."

The debate underscores a central tension in Strategy's capital-allocation model. The company holds 843,775 bitcoin acquired for about $63.69 billion, or an average price of $75,476 per coin — roughly 19% above Bitcoin's current price of $63,672, as of 14:30 UTC Tuesday. Bitcoin has fallen more than 43% from its October 2025 peak above $109,000, according to CoinGecko data.

Strategy's annual dividend and interest obligations total roughly $1.76 billion. The company's USD reserve stood at $2.55 billion as of July 5, providing about 17 months of dividend coverage — a level preferred stock investors consider adequate but not comfortable. Saylor's projection suggests that even modest Bitcoin appreciation could sustain those payments without further asset sales.

Still, the company has already signaled it may sell up to $1.25 billion in additional bitcoin under its BTC Monetization Program, and the full capacity remains available. Strategy has halted new bitcoin purchases after its preferred stock fell below par, cutting off its primary funding source for accumulation.

For Bitcoin holders, the implication is clear: the world's largest corporate whale may no longer be a reliable buyer, and its willingness to sell to meet obligations introduces a new supply-side variable. Whether Saylor's 3.3% thesis holds depends on Bitcoin's ability to sustain even modest annual gains through the remainder of the crypto cycle.

This article is for informational purposes only and does not constitute investment advice.