Is an 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's (BTC) explosive growth potential with stable cash flow, is attracting institutional investors' funds like a black hole, shaking up the traditional financial market.

On April 24 (local time), Strategy CEO Phong Le, in an interview with the cryptocurrency YouTube channel Paul Barron Network, elaborated on the success factors of STRC, a preferred stock product that recently attracted $8.5 billion in funds, and its Bitcoin-based profit structure.

Strategy immediately invests funds secured through STRC issuance into Bitcoin purchases to maximize asset value. CEO Le explained, "Assuming Bitcoin will grow by approximately 30% annually, we pay an annual cash dividend of 11.5% and secure the remaining profit as company revenue." The overwhelming financial statements, currently holding over 820,000 BTC, are the key driver in offsetting Bitcoin's high volatility and delivering only an extremely low volatility level of around 2% to customers.

Contrary to market concerns, the current collateral structure remains very robust. This is because the scale of issued products, at only $8.5 billion, is dwarfed by 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 operation processes are disclosed, and dividends are sourced not from product sales proceeds but through the issuance of separate common stock. Le added, "The innovation that digital transformation has brought 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 turn their 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 any investment losses based on it. The content should be interpreted for informational purposes only.*