Strategy CEO Wants to Keep Paying Dividend in Perpetuity

Financial Strategy & Risk Management - MicroStrategy's primary treasury reserve asset is Bitcoin, complemented by a U S dollar reserve for short-term obligations like dividend payments [2][3] - The company aims to maintain a cash reserve equivalent to 2-3 years of dividend payments, which will grow with the issuance of more preferred shares [12] - MicroStrategy considers selling Bitcoin as a last resort, prioritizing dividend payments [7] - The company clarifies its leverage is 12%, or 27% including preferred shares, significantly lower than typical public companies in the US [8] - MicroStrategy issued $1.44 billion of equity in eight and a half days, enough to cover 21 months of dividends [9] Dividend Policy - MicroStrategy is committed to paying dividends in perpetuity, though the board retains the right to suspend them [6] - Suspending dividends could create fear, uncertainty, and doubt among preferred shareholders, impacting convertible and equity shareholders [5] Company Identity & Market Perception - MicroStrategy emphasizes it is an operating company, not a closed-ended fund or ETF, and should be valued at a premium for its ability to grow its treasury and operating income [15][16] - The company is engaging with MSCI to educate them on its identity as an operating company, countering the perception that it is an investment fund [18][19] Bitcoin Strategy & Future Opportunities - MicroStrategy's core business is buying and holding Bitcoin [22] - The company is excited about traditional finance entering the Bitcoin space, with banks offering custody, lending, and staking services [22][23] - MicroStrategy is open to partnering with US-based banks with strong balance sheets for Bitcoin services like custody and lending [25]