Strategy Inc. (NASDAQ:MSTR) executive chairman Michael Saylor has said that Bitcoin (CRYPTO: BTC) needs to appreciate by only 2.3% annually for the company to fund its STRC dividends indefinitely by selling small portions of its holdings.

The 2.3% Breakeven Threshold

Strategy posted a chart comparing two scenarios for its dividend funding model.

If Bitcoin does not grow at all, the company can still cover dividend payments for about 43 years using its current setup.

If Bitcoin grows by 2.3% annually, the gains from Bitcoin would fully offset dividend costs, meaning Strategy could theoretically fund dividends indefinitely without running out of value.

The breakeven annual rate of return is the minimum yearly Bitcoin growth needed for the strategy to sustain itself forever under the current capital structure.

Saylor Addresses Selling Bitcoin For The First TimeA

Saylor floated the idea during Strategy’s earnings call that selling a small amount of Bitcoin to fund STRC dividends is now on the table, marking a shift from his long-standing “never sell your Bitcoin” mantra.

When asked what changed, Saylor insisted nothing has changed. 

He clarified the company would never be a net seller of Bitcoin, noting that if Strategy had to sell a tiny fraction, he would guarantee buying five or 10 times that much at the end of the month.

Saylor explained he was “floating the idea to inoculate the market,” essentially protecting himself from shareholder lawsuits as Strategy markets STRC to retail investors rather than exclusively to institutions.

The Shift To Retail Marketing

Strategy is now marketing STRC as a retail yield product offering 11.5% annual returns.

Saylor is subsidizing that yield because Strategy is not a bank, meaning the yield is based on his ability to pay a number he is making up, which is perfectly legal.

Strategy has to have the assets in cash to pay that yield.

Currently it does, but there is a potential scenario where Strategy doesn’t have cash but does have Bitcoin, forcing the company to sell a small amount.

The legal reality of marketing to retail requires markets to see that Strategy’s massive Bitcoin holdings could be put to work rather than remaining completely frozen.

Yield Coins And DeFi Expansion

Saylor shocked listeners by discussing “yield coins” during his keynote at Consensus Miami 2026, talking about crypto and DeFi unassociated with Bitcoin.

He mentioned the idea of algorithmic stablecoins backed by STRC instead of other mechanisms.

Moreover, Saylor acknowledged that stablecoins add huge value to the public and smart contracts add huge value to what Strategy is doing with STRC, marking a complete reversal from his previous stance that Ethereum was illegal.

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