Michael Saylor is urging STRC shareholders to approve a proposal to change dividend payments from monthly to semi-monthly, maintaining an annualized yield of 11.5%. The vote, set for June 8, aims to reduce reinvestment lag and improve market efficiency. This move comes as Peter Schiff criticizes Strategy's financial practices, claiming the firm faces liquidity issues due to its reliance on selling STRC shares to fund Bitcoin purchases.
Schiff argues that Strategy's model resembles a Ponzi scheme, as it requires fresh equity issuance to sustain dividend payments. His concerns are heightened by Strategy's recent $1.38 billion debt retirement, which reduced its cash reserves significantly. Saylor has acknowledged the possibility of selling Bitcoin to cover dividends if necessary. The outcome of the shareholder vote will indicate retail investors' confidence in the current yield model.
Michael Saylor Advocates STRC Dividend Change Amid Criticism from Peter Schiff
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