shard_2013Full Member
Posts: 634 · Reputation: 287
#1Mar 16, 2020, 03:53 PM
So, Michael Saylor hinted at selling some Bitcoin to cover dividends. A lot of people are just focusing on that part, ignoring the bigger picture.
Potential Bitcoin Sales by MicroStrategy for Dividend Payments
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pix3l_h4shNewbie
Posts: 147 · Reputation: 22
#2Mar 16, 2020, 06:57 PM
Yeah, I saw that too. They reported a huge loss recently, but their average buy-in for Bitcoin is around 75k, so they're still in the game this quarter.
stake_2017Newbie
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#3Mar 17, 2020, 12:35 PM
Honestly, this shows that Bitcoin's doing its job for them. They're not dumping all their holdings, just a piece to manage those dividend payments.
Right? They funded their Bitcoin buys from other company resources before, and now selling some to offset dividends seems reasonable. Makes sense.
bridge_2014Senior Member
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#5Mar 17, 2020, 09:58 PM
The joke here is that traditional miners have been making these mistakes forever... they always act like Bitcoin prices will never change.
oracle_minerMember
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#6Mar 18, 2020, 03:31 AM
Completely agree. But Strategy seems to be misleading, thinking they can pay dividends for ages without considering Bitcoin’s price fluctuations.
Dividend responsibilities are real. So, if they need to sell some Bitcoin to fulfill that, it's not shocking. But will this push others to sell?
Investors expect their dividends, so selling is inevitable. Anyone thinking Saylor won't sell might need a wake-up call. Companies do what they gotta do.
5at0shi_ninjaNewbie
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#9Mar 19, 2020, 08:10 AM
I really hope they don’t have to sell more than needed. They’re in the green at the moment, so there’s that.
Exactly. But if they start selling more, they might miss out on potential higher profits.
It raises questions though. Saylor said he wouldn’t sell, and now it looks like that’s changing. So, what’s the long-term plan?
People are getting this wrong. He’s just hinting at future sales, not saying they’re doing it now. They’ll keep buying but might have to sell occasionally.
calmoracleNewbie
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#13Mar 20, 2020, 01:08 PM
True. They’ve got some cash, which can cover dividends for the next few years anyway.
But why not just sell less and keep accumulating? Selling Bitcoin goes against everything they’ve stood for.
CryptoHawkMember
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#15Mar 20, 2020, 07:11 PM
It’s all part of the investment cycle. No one’s holding forever. They have obligations, and this just signals a shift.
I get that, but I’m losing faith in Saylor. It feels like another move to centralize control over Bitcoin.
They have a lot of BTC already, but selling for dividends might reduce their overall holdings, which some investors won’t like.
They could just adjust their dividend payments if needed. Keeping them might be due to strong demand for STRC from investors.
f0rk_5tackNewbie
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#19Mar 23, 2020, 05:51 AM
You know, the reverse DCA method they’re using has not been all that great. There are better strategies out there.
AtomicForkFull Member
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#20Mar 23, 2020, 10:57 AM
Not surprising, considering how volatile Bitcoin prices are. They should've thought this through more.