SAYLOR JUST DESTROYED THE BIGGEST BITCOIN FUD

Today, Strategy announced that it has increased its USD reserve to $2.19 billion.

Here's why this is so important:

Let's first understand the debt structure of Strategy.

Any convertible debt of Strategy won't mature before September 2028.

Also, the interest rate on these debt is merely 0.42%

But there's another side of Strategy debt structure.

Strategy has launched several instruments to increase its BTC accumulation.

The holders of these instruments get paid 8%-11%, which is pretty high.

The 4 instruments Strategy has launched are STRD, STRK, STRC, and STRF.

If calculating the yearly dividend payment from these 4 instruments, it comes around $698.48 million.

The biggest fear was that if BTC continues to drop, Strategy will have to sell their holdings for dividend payments.

Saylor stopped this FUD when he announced a USD reserve of $1.44 billion.

But the market was not fully convinced.

What if BTC doesn't hit a new ATH before 2028?

Now, Strategy doesn't care.

After increasing their USD reserve to $2.19 billion, Strategy could pay the dividend for 3+ years without selling a single BTC.

And historically, BTC has made a new ATH in the halving year.

So if 4-year cycle is intact, Strategy is all good.

If a supercycle happens, Strategy will be even better.