Michael Saylor Says Bitcoin Capital Gains Can Fund Dividend Obligations 'Indefinitely' if BTC Grows by This Much Annually—Peter Schiff Pushes Back

Strategy Inc. (NASDAQ:MSTR) co-founder Michael Saylor said connected Tuesday that Bitcoin's (CRYPTO: BTC) superior gains tin theoretically screen dividends connected its preferred banal "indefinitely" if the plus grows astatine implicit 3.3% annually.

Saylor's Argument

Saylor posted a illustration connected X showing 31 years of dividend sum of Perpetual Stretch Preferred Stock (NASDAQ:STRC) astatine a 0% annualized complaint of return.

He past pegged the breakeven astatine 3.3%, meaning that immoderate semipermanent maturation successful Bitcoin supra 3.3% would nutrient superior gains capable to money the dividends infinitely.

One of the astir misunderstood $MSTR metrics is BTC Breakeven ARR. If BTC appreciates faster than 3.3% implicit time, BTC superior gains tin money $STRC dividends indefinitely. https://t.co/rfB4VMbUZo

— Michael Saylor (@saylor) July 7, 2026

Strategy introduced the STRC preferred stock last twelvemonth to supply a high-yield, lower-volatility income instrument. The proceeds are used to get much Bitcoin. It presently pays a 12% yearly dividend, which is paid semi-monthly successful currency and adjusted periodically to promote the banal to commercialized adjacent to its $100 par value.

The Counter Argument

Longtime Bitcoin professional Peter Schiff, meanwhile, rejected Saylor's logic, stating it assumes "dividend obligations won't implicit time," an result helium maintains is inevitable.

That presume the dividend work doesn't summation implicit time, which it has done and volition apt proceed to do.

— Peter Schiff (@PeterSchiff) July 7, 2026

Cryptocurrency expert Ali Martinez questioned the reliability of utilizing BTC gains for accordant dividend payments, noting respective years successful which Bitcoin posted antagonistic yearly returns.

— Ali Charts (@alicharts) July 8, 2026

Read Also:As Michael Saylor's Strategy Normalizes Bitcoin Sales, Crypto Punters Doubt It Will Reach 1 Million BTC by Year-End

The New 'Strategy'

Strategy has besides announced a Bitcoin monetization programme that lets the institution merchantability its BTC to rise up to $1.25 cardinal for currency reserves, wage preferred dividends and involvement connected debt, and enactment repurchases of preferred and communal stock.

Last week, it offloaded 3,588 BTC for astir $216 cardinal to money the dividends

The determination has shaken capitalist sentiment, portion critics person accused it of pivoting from being Bitcoin's largest firm buyer to selling the plus to money its operations.

Price Action: At the clip of writing, BTC was exchanging hands astatine $62,975.15, down 0.47% implicit the past 24 hours, according to information from Benzinga Pro.