Strategy says Bitcoin reserves cover 32 years of dividends amid criticism

Supporters pointed to the size of the company’s holdings and Bitcoin’s recent 7% gain, while economist Peter Schiff said the estimate overlooks sale impact, flat-price assumptions and new share obligations.

Summary

Strategy said its Bitcoin reserves are large enough to fund 32 years of dividend payments, framing the scale of its holdings as a financial buffer. The claim drew pushback from critics including economist Peter Schiff, who argued the calculation fails to account for the market impact of selling Bitcoin, assumes prices remain flat and ignores additional obligations created by new share issuance. Supporters countered by highlighting the size of the reserves and Bitcoin’s recent 7% gain, underscoring the debate over how durable treasury-backed payout assumptions are when they depend on volatile assets.

Terms & Concepts
  • Bitcoin reserves: A company’s holdings of Bitcoin kept on its balance sheet.
  • share issuance: Creation and sale of new shares to raise capital.