Ponzi

Bitcoin

MSTR

Reversal

Michael Saylor rejected claims that Strategy's Bitcoin<a href="https://yellow.com/asset/btc" rel="noopener noreferrer nofollow">(BTC)</a> credit model resembles a Ponzi scheme, arguing the firm monetizes BTC capital gains to fund its <a href="https://yellow.com/news/strategy-strc-dividend-freeze" rel="noopener noreferrer nofollow">STRC dividends</a>.
<h2 id="saylor-pushes-back-on-schiff">Saylor Pushes Back On Schiff</h2>
Saylor <a href="https://u.today/saylor-reveals-what-will-happen-if-strategy-sells-bitcoin" rel="noopener noreferrer nofollow">addressed</a> the market reaction in an interview shared via X on May 9, days after Strategy's first-quarter earnings call. The chairman said the company could sell Bitcoin to fund dividends on its STRC preferred instrument if needed.
That comment broke from Saylor's long-standing "never sell your Bitcoin" mantra.
<blockquote>
 He told viewers a more precise framing is that Strategy never intends to be a "net seller" of Bitcoin.
</blockquote>
The pushback responded to Peter Schiff and other critics, who <a href="https://www.benzinga.com/crypto/cryptocurrency/26/05/52357678/peter-schiff-says-michael-saylor-would-crash-strc-rather-than-bitcoin-by-suspending-strategys-preferred-stock-dividends" rel="noopener noreferrer nofollow">argued</a> that any willingness to sell Bitcoin for dividend payments exposed weakness in the structure. Saylor rejected that framing. He said the company's roughly $65 billion in Bitcoin holdings should be treated as a real asset by credit rating agencies, not valued at zero.
Also Read:<a href="https://yellow.com/news/lunc-post-collapse-chain-trading-volume-2026" rel="noopener noreferrer nofollow">LUNC At $0.000103: Why The Post-Collapse Chain Still Draws Trading Volume</a>
<h2 id="the-2-3-math-behind-strc">The 2.3% Math Behind STRC</h2>
Saylor described the core mechanism as a credit-backed capital investment in digital assets. Strategy issues credit, buys Bitcoin, and expects long-term appreciation to outpace the cost of the dividend.
He <a href="https://stocktwits.com/news-articles/markets/equity/why-saylor-says-mstr-can-pay-dividends-forever/cZXew3WReWR" rel="noopener noreferrer nofollow">compared</a> the structure to a real estate developer that raises capital through credit, improves the land, then monetizes the gains.
<blockquote>
 The capital investment, he argued, accretes faster than the dividend obligation over time.
</blockquote>
According to his own math, Bitcoin needs to appreciate just 2.3% annually for Strategy to cover STRC dividends indefinitely without selling common equity. Strategy sold $3.2 billion of STRC in April, while monthly dividend payments run roughly $80 million to $90 million.
In that scenario, Saylor said, the company would effectively be "buying 30 Bitcoin and selling one Bitcoin," remaining a net accumulator across any meaningful time frame.
<h2 id="why-the-reversal-spooked-markets">Why The Reversal Spooked Markets</h2>
The Q1 earnings call already shook investors before Saylor's follow-up interview. Strategy <a href="https://news.bitcoin.com/strategy-sell-bitcoin-dividends-saylor-never-sell-2026/" rel="noopener noreferrer nofollow">reported</a> a $12.5 billion net loss for the quarter, driven by mark-to-market adjustments on its Bitcoin holdings as the asset fell.
MSTR stock dropped more than 4% after hours following the original disclosure, and Bitcoin slipped below $81,000. The firm now holds 818,334 BTC at an average cost near $75,537, against annual dividend obligations of roughly $1.5 billion across STRK and STRC.
At press time, Bitcoin traded around $80,750, after briefly <a href="https://yellow.com/news/bitcoin-flatlines-81000-altcoins-double-digit-gains" rel="noopener noreferrer nofollow">crossing the $81,000 line</a> earlier this month for the first time since January.
Read Next:<a href="https://yellow.com/news/gold-etfs-snap-back-april-inflows" rel="noopener noreferrer nofollow">Gold ETFs Snap Back: $6.6B April Inflows Reverse Record March Rout</a>

Saylor Defends Strategy’s $65B Bitcoin Model Against Ponzi Claims

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