'Ponzi Scheme': Saylor's Strategy's New Dividend Policy Raises Criticism

Cover image via www.freepik.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Strategy behind Strategy Relying on Bitcoin heavily Advertisement Strategy's most recent dividend-focused move is receiving more and more criticism, some analysts have openly compared the structure to a Ponzi scheme . The controversy comes at the worst time, because Bitcoin is in a bearish position and ecosystem-wide leverage is still high, raising questions about sustainability. Strategy behind Strategy The company's strategy has always relied on aggressive Bitcoin accumulation funded by debt and equity offerings. Another layer of pressure is created by the new dividend policy, which is marketed as a means of stretching income, but actually creates a recurring cash commitment, while the underlying asset Bitcoin is still volatile and far below recent highs. HOT Stories Elon Musk's X Restricts Crypto From Paid Features, Shiba Inu (SHIB) Averages Historic 24% Price Rise in March, 'I Love Cardano': Hoskinson Teases More for ADA — Morning Crypto Report Ripple CEO Urges Banks to Act in Good Faith Stretch Dividend Rate increased by 25 bps to 11.50% for March 2026. $STRC pic.twitter.com/G52tLsypsH — Michael Saylor (@saylor) March 1, 2026 Paying large dividends while depending on market-driven appreciation, according to critics, creates a vicious cycle in which new capital might be needed to maintain the balance sheet and shareholder expectations. Advertisement The timing is problematic from the standpoint of the market . The price of Bitcoin is trapped below important moving averages on its daily chart, and the 100- and 200-day trends are still declining. Recent triangular formations indicate indecision rather than strength, and attempts to stabilize have only resulted in temporary consolidation. Relying on Bitcoin heavily Instead of emphasizing confident accumulation, high volume spikes during drops emphasize defensive positioning. Strategy's sizable treasury position may experience more mark-to-market stress if Bitcoin is unable to recover significant resistance zones. Advertisement Because returns seem to be becoming more and more reliant on constant inflows, critics have compared the structure to a Ponzi scheme, though this isn't necessarily because it fits the strict definition. You Might Also Like Sat, 02/28/2026 - 12:15 23,300 BTC Moved to Exchanges at Loss as Bitcoin Drops Below $64,000 By Tomiwabold Olajide According to this perspective, dividends might appear less like an organic yield and more like a mechanism that needs fresh funding or rising asset values to stay afloat. Raising capital may become more costly, and debt refinancing risks would become significant if cryptocurrency sentiment continues to decline. Proponents argue that the approach is still straightforward: structured financial engineering combined with long-term exposure to Bitcoin. According to their argument, past downturns have ultimately rewarded patience, and volatility is only temporary. #Bitcoin #Michael Saylor #Strategy News