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With a Ponzi scheme they don’t buy assets with the money they raise they buy yatchs and planes and the monies are not reinvested into the company.

You don’t have to invest and no one is telling you to. But calling BTCTCs a ponzi is not true.

Brisket 4mo ago

Selling a preferred stock to pay the yield on previously issued preferred stock completely fits the definition of a ponzi.

Yeah they're buying Bitcoin with the proceeds instead of running off with the money but the strategy is akin to a ponzi. They're also not taking on debt, just an obligation to pay a yield.

I own a small amount of MSTR & I like their strategy. I'm not under any illusion of what they're doing though. They're scamming holders & earners of USD. It's accelerating the demise of USD & the monetisation of BTC.

LFG 🔥

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Discussion

:P 4mo ago

While they have been hitting the ATM to pay dividends it’s not necessarily the only way in which they can pay the dividends. They can pay out dividends with straight up common stock or sell their corn.

By the way this is a lot better than what traditional dividend paying stocks do. In the old legacy system they pay dividends with future cash flows. That to me is closer to a ponzi.