Saylor Says Strategy’s Bitcoin Credit Model Is Not A Ponzi Scheme
Michael Saylor defended MicroStrategy's Bitcoin-backed credit model against criticisms that it resembles a Ponzi scheme, emphasizing the company monetizes Bitcoin's capital gains rather than relying on perpetual equity issuance. He clarified his famous "never sell your Bitcoin" stance, stating the more precise strategy is to never be a *net seller*. The company's recent announcement that it might sell Bitcoin to fund dividends on its STRC preferred instrument sparked debate. Saylor explained the core model: issuing credit to buy Bitcoin, expecting its long-term appreciation to exceed dividend costs, analogous to a real estate firm. He argued that even if Bitcoin is sold for dividends, ongoing credit issuance ensures the company remains a net buyer, especially if Bitcoin appreciates more than the dividend yield. Saylor dismissed critics like Peter Schiff, stating their objections stem from rejecting Bitcoin's legitimacy itself. He described STRC as overcollateralized "digital credit" designed to offer yield while mitigating volatility.
bitcoinist05/11 14:59
