Blockstream Founder Proposes Bitcoin Dividend Program for Michael Saylor’s Strategy

• Adam Back has asked Michael Saylor’s Strategy to start a Bitcoin in-kind dividend program.
• Back believes the alternative Strategy will support the strategy’s carry trade program.
• Michael Saylor’s latest comments suggest that Strategy is planning another BTC purchase.

Blockstream founder Adam Back has suggested a new dividend program for Michael Saylor’s Strategy. Back made the statement in response to Saylor’s plans, which he made known in an uploaded video on X, explaining his firm’s investment strategy and plans for the future.

Back’s suggestion triggered a discussion among Bitcoin community members paying attention to the developments at Strategy. Some respondents to the post held contrary views on the best way to manage the Strategy investment program. However, several others sought clarity on Back’s proposal, seeking to understand how it would benefit the firm, alongside investors.

According to Back, Strategy needs to start a Bitcoin in-kind dividend program. His suggestion prompted a response from a Bitcoin user, who explained that there are existing platforms already offering such a service.

He stated that such platforms offer dividends paid in BTC to those who hold STRC, a high-yield, Bitcoin-backed financial instrument from Strategy.

However, Back clarified that his suggestion tilts toward Strategy’s carry trade stops, perhaps the firm stops accumulating Bitcoin at 7.5%. Back’s focus is on instituting a clear structure that will be easy for investors to understand. Even with that, another respondent thinks such a system will ruin Strategy’s carry trade, which, according to him, is what separates TradFi from DeFi.

Still, Back believes there is no dead end, even if there is a risk of ruining the carry trade. He argued that such a scenario can be addressed by issuing an extraordinary dividend. After all, the carry trade will stop as soon as the firm stops accumulating assets.

In the meantime, it is worth noting that the broader Bitcoin community considers Saylor’s latest comments as a signal that Strategy is preparing for another round of Bitcoin purchase. These comments came a few days after he made an encrypted post on X with the phrase “Think Even Bigger,” attaching an image of a Bitcoin reserve value at about $59 billion, holdings of 780,897 BTC, and an average cost of $75,789 per bitcoin.

Strategy held 815,061 Bitcoins at the time of writing, making it the largest corporate holder of the cryptocurrency.

Related: Michael Saylor Tweets ‘Think Even Bigger’ as Strategy Hints at Its Largest Bitcoin Purchase