MSTR's 70-Year Dividend Claim | Mixed Reactions Persist
MicroStrategy (MSTR) faces skepticism over its ambitious assertion of sustaining dividends for 70 years based on stable Bitcoin prices. Recent discussions in forums highlight significant doubts about its long-term plan amid volatile crypto markets, raising questions about the company's true financial health.
Controversy Deepens
A post referenced MSTR's potential to maintain dividends if Bitcoin holds steady. Critics vehemently disagree. One user commented, "If the price stays flat, it does a lot of lifting here," illustrating the challenge of this claim.
Concerns about sustainability are rife. Even if Bitcoin’s value remains stable, selling a fraction of their holdings could spark dramatic price drops, with one commenter warning: "If MSTR sells a single Bitcoin, it could be the signal for a 50% drop."
Adding to the chatter, there's speculation about MSTR's actual purchasing strategy. One user claimed it's questionable if MSTR remains the only institution still acquiring Bitcoin, stating, "The dollars MicroStrategy gave to criminals are long gone." This raises flags among investors about the company's approach and market realities.
Bitcoin's Nature Under Scrutiny
The discussions have broadened to question Bitcoin's foundational value. Some views echoed concerns about viewing it purely as an investment, with one comment suggesting that this leads to creating a "(decentralized) Ponzi scheme.” Another user dismissed Bitcoin as merely an application of the greater fool theory.
There’s a faction that believes Bitcoin’s potential to climb could disrupt flat predictions, with one vibrant comment forecasting "Bitcoin is rallying like crazy right now" and predicting a surge to "break 200k by the end of the month."
Transparency and Accountability Demanded
Amid the skepticism, there’s a pressing call for MSTR to provide clarity. One commentator emphasized the need for a credit rating dashboard as a means of restoring faith: "If you are really doing good as a solvent company you would create a credit rating dashboard, right?" This highlights a gap in trust among investors regarding MSTR's financial status.
Others are cautious about dividends tied to MSTR’s Bitcoin exposure. One critic asked, "Why would anyone want to pay 1.5% in dividends for MSTR to hold Bitcoin for them?"
Key Insights from the Forum Debate
📉 Selling Bitcoin might initiate sharp market declines.
💬 User skepticism mixed with demands for transparency.
🔎 Questions raised about MSTR's operational tactics amid Bitcoin price volatility.
As these discussions unfold, the ongoing sentiment remains a mix of apprehension and unpredictability as the crypto landscape shifts. Investors are left wondering: Can MSTR truly uphold its ambitious long-term claims in the face of such uncertainty?