The strategy claims 32 years of dividend payments with STRC falling below $90

Michael Saylor’s strategy claims to have enough reserves to pay decades of dividends, but not everyone agrees.

“We have 32 years of dividend coverage with our BTC reserves,” Strategy on In principle, the math works, as the company’s Bitcoin treasury is currently worth just under $55 billion, and its dividend obligations stand at $1.7 billion.

In November, Strategy claimed it had a 71-year dividend cover “assuming the price remains constant,” which it did not. The strategy pays dividends on its stretch product (STRC), which offers an 11.5% yield and is designed to trade at $100.

However, STRC prices have fallen more than 10% recently, meaning the effective yield will increase and the company will need cash to pay the higher dividends.

STRC declines below $90

STRC stock fell another 3%, approaching its record low, hitting $89 on Wednesday. According to To Google Finance. STRC’s current effective yield is 12.9%, according to BitcoinQuant.

Responses raised concerns about the strategy having to sell more bitcoin to meet payments, the heavy dilution of its common stock, the MSTR, and the risk that a forced sale could accelerate the depletion of reserves if prices decline.

MSTR prices also took a hit on Wednesday, falling another 5% on the day to $116. The stock is currently down 73% from its all-time high in July 2025.

We have 32 years of dividend coverage by $ Bitcoin Reserve. pic.twitter.com/qTvQYLweul

– Strategy (@Strategy) June 17, 2026

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Gold-bug and Bitcoin critic Peter Schiff has been very vocal against Saylor and Strategist recently. He commented on Strategy’s 32-year-old demand to pay dividends, saying:

“This assumes you don’t raise the dividend on the preferred stock, you don’t issue any more preferred stock, and the price of Bitcoin doesn’t fall. In fact, if you start selling Bitcoin to cover your liabilities, the price will fall even faster, depleting your reserves much faster.”

Others agreed, with Kaleo adding, “The responsible thing to do is to cut your losses sooner rather than later and sell Bitcoin now.”

“The lower the price you have to sell, the more Bitcoin you will have to sell to raise the same amount of cash.”

“Do the math again without thinking that your sales will never lead to a decline in the price of BTC,” said CryptoQuant analyst Darkfost.

Will the strategy sell more Bitcoin?

The strategy sold 32 bitcoins in late May, adding to broader market uncertainty and a significant bitcoin sell-off. However, it is acquired 1,587 BTC for about $100 million last week and bought 1,550 BTC for a similar amount in early June.

Selling Bitcoin to cover dividend obligations seems to be the only option, but this will create a negative feedback loop or “death spiral”, where the price of Bitcoin will also fall further.

However, Joe Burnett, Vice President of Strive, He said That if the strategy allows the market to test its lows, and then pushes it back into the target range with more buying, it can build confidence.

“The market will train that temporary breakouts below the target range could be buying opportunities, especially if dividends continue to be paid and the price returns to the range quickly.”