Annual Dividend of 11.5% a Scam?...Strategy CEO Directly Reveals the Secret to Profit

▲ Strategy, Bitcoin (BTC)/AI generated image

An innovative dividend product, combining Bitcoin (BTC)'s explosive growth potential with stable cash flow, is shaking up the traditional financial market by attracting institutional investors' funds like a black hole.

Phong Le, CEO of Strategy, revealed the secret to the success of their preferred stock product, STRC, which recently attracted $8.5 billion in funds, and its Bitcoin-based profit structure in detail during an interview with crypto-specialized YouTube channel Paul Barron Network on April 24th (local time).

Strategy immediately invests funds secured through STRC issuance into Bitcoin purchases, maximizing asset value. CEO Le explained, "Under the premise that Bitcoin will grow by approximately 30% annually, we pay an annual cash dividend of 11.5% and secure the remaining profit as company earnings." The overwhelming financial statement, currently holding over 820,000 BTC, is the key driver that offsets Bitcoin's high volatility and delivers an extremely low volatility of around 2% to customers.

Contrary to market concerns, the current collateral structure remains very robust. This is because the volume of issued products is only around $8.5 billion compared to Bitcoin assets approaching $60 billion, ensuring a stable collateral ratio. The product is classified as a return of capital for tax purposes, offering the benefit of deferring tax payments for up to 10 years, making it a strong incentive for investors in high-tax regions.

Regarding the Ponzi scheme allegations raised by some, the management strongly refuted them based on high transparency. Le emphasized that all fund management processes are disclosed, and dividends are sourced through the issuance of separate common shares, not from product sales proceeds. Le added, "The innovation brought by digital transformation to the financial system should not be mistaken for a Ponzi scheme."

Strategy is transforming Bitcoin from a mere investment asset into a sustainable profit model, setting a new standard for digital finance. As even conservative investors in traditional finance pay attention to high-yield dividend products beyond Bitcoin spot ETFs, the institutional adoption of virtual assets is expected to accelerate further.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*