Strategy's Michael Saylor expects Bitcoin to gain 20%-30% annually

Summary

Michael Saylor, Executive Chairman of Strategy, stated that the company anticipates a 20% to 30% annual appreciation in Bitcoin, suggesting this growth would sufficiently cover the 12% annual dividend paid by its variable-rate preferred stock, STRC. He characterized STRC as a credit instrument aimed at providing relative price stability, as opposed to requiring investors to fully absorb Bitcoin's volatility. With STRC's current dividend rate translating to $12 per $100 stated amount, Saylor emphasized that the company’s substantial Bitcoin holdings underpin this financial strategy, allowing for a semi-monthly dividend payment when declared, which was recently $0.50 per share.

Analysis