Michael Saylor's Bitcoin Strategy Is A Ticking Time Bomb, Experts Warn
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Michael Saylor's company, Strategy (formerly MicroStrategy), plans to issue a new perpetual preferred stock, STRF, with a 10% annual dividend to finance more Bitcoin purchases. This move has sparked debate over the sustainability of Saylor's high-risk Bitcoin strategy.
March 19, 2025 | 8:15 pm
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Strategy (formerly MicroStrategy) is issuing new perpetual preferred stock, STRF, to finance further Bitcoin purchases. This move raises concerns about the sustainability of its high-risk strategy.
The issuance of new stock to finance Bitcoin purchases suggests a continued high-risk strategy by Strategy. The 10% dividend on STRF indicates a significant cost, which could impact financial stability if Bitcoin prices fall. This raises concerns among investors, potentially leading to a negative short-term impact on MSTR's stock price.
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