MicroStrategy announced this morning that its reserve of 649,870 Bitcoins is sufficient to cover 71 years of dividends at the current BTC price, “and any rise in the price of Bitcoin exceeding 1.41% per year will completely offset our annual dividend expenses.”
However, despite having such a strong “balance sheet”, the S&P 500 index refuses to include it, and now MSCI may also kick Strategy out of the main index. Once the dust settles, the crypto industry could lose billions of dollars in funding.
According to MicroStrategy data:
BTC holdings: 649,870 BTC
Valuation benchmark: $87,000/BTC
BTC total value: 56 billion dollars
Annual dividend coverage: 700 million dollars
Total debt: 8.2 billion USD
The dashboard shows that under the current Bitcoin price assumption, the dividends can indeed be maintained for 71 years.
A 1.41% annual BTC appreciation rate is the company's breakeven point, where the growth of BTC alone can cover dividends without tapping into the principal. However, it is important to note that no auditors or third-party analysts have verified the so-called 71-year claim. Besides the dashboard, no detailed assumptions have been published. MicroStrategy itself describes these as model predictions rather than guarantees.
However, Daniel Muvdi, the market director of Quantfury and founder of Bitfinanzas, strongly questions MicroStrategy's claim of “71 years of dividend coverage.” He believes there is a fundamental flaw in the logic of using Bitcoin to pay dividends.
Muvdi believes that any Bitcoin liquidation would immediately trigger a significant sell-off in MSTR's stock price, as the market closely monitors the Bitcoin held by the company and views it as a core value driver. He questions whether investors can tolerate the company “destroying Bitcoin” to pay dividends and points out that such a move would undermine market confidence and exacerbate downward pressure on the stock price. In his view, this statement is not only unrealistic but also misunderstands the market's valuation of MicroStrategy and its response to changes in its Bitcoin reserves. (CCN)
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Robert Kiyosaki warns of a “fake coin” crash, insisting Bitcoin is the safest asset for 2026
Robert Kiyosaki, in a recent post, said that Bitcoin and Ethereum could become the safest investments of 2026, because the United States continues to print money, debt is rising, and inflation is worsening. He criticized the safety of U.S. Treasuries as “the biggest lie,” and noted that real assets and cryptocurrencies can preserve wealth during inflation. His investment recommendations include holding Bitcoin, gold, silver, and commodities. Although some of his predictions weren’t accurate, some of his long-term predictions have come true.
MarketWhisper11m ago
Bitcoin Prints Similar Bullish Chart to Previous Pump, Is Liquidity Ready to Return to the Crypto Market?
Bitcoin prints similar bullish chart to previous pump.
This leads experts to expect liquidity to return to the crypto market soon.
Will the crypto bull cycle enter a bullish extension phase?
The crypto market continues steadily in a sideways pattern, with the price of BTC currently
CryptoNewsLand39m ago
BTC 15-minute surge of 0.84%: Upward momentum driven by insufficient liquidity and the resonance between futures premium arbitrage
2026-04-05 15:15 to 15:30 (UTC), the BTC price fluctuated within the 66,938.9 to 67,529.9 USDT range, with a 15-minute return of +0.84% and a volatility (amplitude) of 0.88%. During the same period, market trading activity increased: the number of active on-chain addresses over 10 minutes reached 420,690, short-term buying sentiment improved, and attention to the market was boosted.
The main drivers behind this move are persistent liquidity tightness in the spot and derivatives markets. Current trading volume is significantly lower than the range since the end of 2023, and the threshold for buy-side pressure to push prices higher has dropped markedly.
GateNews43m ago
Saylor responds to Schiff: Bitcoin has been the best performer since August 2020—time horizon matters
Peter Schiff said that Bitcoin has risen only 12% over the past five years and has underperformed the Nasdaq, the S&P 500, gold, and silver; Michael Saylor then responded that Bitcoin has been the best mainstream asset since August 2020, emphasizing the importance of the time frame.
GateNews2h ago
Bitcoin Correction Shows Market Maturity Amid Rising Institutional Demand
Bitcoin’s 50% drop shows reduced volatility and signs of market maturity.
ETF inflows and growing participation stabilize prices and improve liquidity.
Even small Bitcoin allocations can enhance returns while balancing risk exposure.
Bitcoin — BTC, has handled the recent correction
CryptoNewsLand2h ago
Robert Kiyosaki recommends Bitcoin, gold as 1974 shift comes full circle
Rich Dad Poor Dad author Robert Kiyosaki has argued that the economic shifts set in motion more than five decades ago are now unfolding, advocating for Bitcoin and gold while warning against rising debt, inflation and retirement risks.
In a Saturday post on X, Kiyosaki pointed to 1974 as a
Cointelegraph3h ago
