Bitcoin Dividend Strategy Analysis

Like, if Bitcoin stalls for like a serious period of time, and you are required to pay out the dividends on a monthly basis, or now bi-monthly basis, bi-weekly basis, actually,

what is the risk for you with STRC? And, like, at some point, the Bitcoin is not providing the yield that you're looking for, if it stays sideways for a long period of time?

And what is the purpose for like an average micro-service?

Let me break that down.

Yeah, go ahead.

If Bitcoin stalls for the next 40 years, like for the rest of your life, then somewhere 30, 35 years from now, we'll run out of money.

So, we have about 30 to 40 years of dividend coverage. So, if Bitcoin stalls, which means goes up 0% a year for 40 years, then sometime in 35 years or something,

by the way, if we do nothing, if we do nothing for 35 years, and if Bitcoin stalls, then in 35 years, we wouldn't be able to pay the dividend.

We wouldn't do nothing, right? We would refinance or adjust. And so, practically speaking, probably we have 40 to 50 years of Bitcoin stalls.

By the way, we publish that number, the years of dividends, right? And the cash and the Bitcoin coverage. We also calculate Bitcoin breakeven error.

If Bitcoin appreciates about 3% a year, and this number is updated every 15 seconds on the website, if it appreciates 3% a year, we can pay the dividends forever without selling a single share of common stock.

So, the machine finances itself forever indefinitely at 3%. It finances itself for the rest of your life or about 35 or 40 years at 0%.

If Bitcoin appreciates at our stochastic cost of capital, like our probabilistic cost of capital over the next 20 or 30 years, call that somewhere between 8% and 10%, then the equity outperforms Bitcoin.

So, the equity is actually a screaming home run. If Bitcoin is 10%, our equity will probably be 15% or something. And if Bitcoin goes to 15%, our equity will be 20%, 25%, because we're amplified.