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
Gate launches the "Compute Power Goes Ballistic" campaign: complete tasks to unlock mystery boxes and win a Mac Studio M3 Ultra; USDT wealth management offers 6% APY; BTC/ETH/SOL staking up to 16% APY
Gate News message, according to the Gate official announcement on April 22, 2026, the platform has launched a "Compute Power Goes Ballistic" themed campaign.
During the campaign (from 14:00 on April 22 to 16:00 on April 26, UTC+8), users can complete multiple tasks to unlock the chance to open mystery boxes. Prizes include Mac Studio M3 Ultra, RTX 5090 GPU, XPIN tokens, lucky draw gift bags, and more, using a 100% guaranteed win model. The tasks cover multiple scenarios such as instant exchange trading, spot trading, derivatives trading, deposits, invitations, and VIP upgrades, with different tasks corresponding to different numbers of mystery box openings.
At the same time, the platform has introduced interim wealth-management products: USDT 14-day fixed-term wealth management with an annualized return of 6%. You can apply with a net deposit of ≥ 1,000 USDT, with a personal limit of 20,000 USDT. For on-chain earnings, staking BTC, ETH, and SOL can receive up to a 7.5% boost, with staked SOL reaching up to 16% annualized returns. In addition, new and existing users can also participate in multi-asset wealth-management products such as ETH, USDD, XAUT, AIA, SWCH, 0G, and APT, with some products offering annualized returns exceeding 100%.
GateAnnouncement24m ago
Bitcoin Liquidation Data: $1.676B in Long Positions if BTC Falls Below $73,721; $883M in Shorts if BTC Breaks $80,768
Gate News: If Bitcoin dips below $73,721, long liquidations on major CEXs could total $1.676B; if BTC climbs above $80,768, short liquidations could reach $883M.
Abstract: This brief notes potential liquidations on major CEXs triggered by BTC price moves: $1.676B in longs below $73,721 and $883M in shorts above $80,768.
GateNews47m ago
Bitcoin Spot ETFs See $11.84M Net Inflows Yesterday, Extending 6-Day Streak
Gate News message, April 22 — Bitcoin spot ETFs recorded total net inflows of $11.84 million yesterday (April 21, U.S. Eastern Time), according to SoSoValue data, extending a six-day consecutive inflow streak.
BlackRock's IBIT led all funds with $39.34 million in single-day net inflows, bringing it
GateNews48m ago
Whale 'Set 10 Major Goals' Holds 717.491 BTC with $1.226M Unrealized Gains
Summary: An on-chain analyst notes a whale wallet 'Set 10 Major Goals' holds 717.491 BTC with $1.226M unrealized gains, opened at $75,731.70; BTC trading at $77,439.70.
Abstract: The report highlights a whale wallet named 'Set 10 Major Goals' with 717.491 BTC and $1.226 million in unrealized gains, opened at $75,731.70, as Bitcoin sits near $77,439.70.
GateNews1h ago
U.S. Navy Admiral Samuel Paparo Says Bitcoin PoW Technology Enhances Cybersecurity, Supports National Security
Abstract: U.S. Navy Admiral Samuel Paparo told a Senate Armed Services Committee hearing that Bitcoin's proof-of-work is a valuable computer science tool with important cybersecurity applications, capable of increasing the cost of cyberattacks and protecting data and command signals, thereby supporting national security. The piece notes echoes of Jason Lowery's 2023 warnings about Bitcoin's security implications.
Summary: Admiral Paparo told Congress that Bitcoin's proof-of-work enhances cybersecurity and national security by deterring attacks and protecting data, a view aligned with Jason Lowery's 2023 remarks.
GateNews2h ago
Crypto Markets See $60.08M in Liquidations in One Hour, BTC Accounts for $27.46M
Gate News message, April 22 — Over the past hour, cryptocurrency markets recorded $60.08 million in liquidations, according to Coinglass data. Bitcoin accounted for $27.46 million of the total, while Ethereum recorded $26.31 million in liquidations.
Short positions dominated the liquidation
GateNews2h ago
