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Strategy Issues Shares to Pay Bitcoin Dividends — Critics Call It a Ponzi Scheme
🪙 Crypto

Strategy Issues Shares to Pay Bitcoin Dividends — Critics Call It a Ponzi Scheme

Strategy (formerly MicroStrategy) has built its position by issuing shares, raising capital and buying Bitcoin. The company is now selling additional shares to fund dividend payments — a mechanism critics compare to a Ponzi scheme, as payouts to existing investors are financed by capital raised from new ones. The model only works as long as Bitcoin's price keeps rising and new investors keep buying in.

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