Strategy Defies Crypto Crash: Saylor's Report Reveals Surprising Results

Michael Saylor's company Strategy recently published its annual performance report on digital credit instruments under the Strategy brand. The report shows a striking divergence between the performance of the company's structured products and the price action of Bitcoin, which plummeted by 47% over the past 12 months.

The infographic accompanying the report highlights the resilience of the company's flagship STRC instrument, which posted a net gain of 9%. Saylor attributes this success to an aggressive dividend policy, where the board of directors promptly adjusts payouts to keep the security's market price near par. The rate was recently raised to 12% annually.

The Strategy lineup is divided into senior defensive tranches with fixed coupons (STRD, STRF) and hybrid convertible instruments (STRK), which allowed investor risks to be distributed during the market storm. However, this stability comes at a price, as the company has been forced to sell Bitcoin from its treasury to provide investors with high double-digit payouts amid the prolonged decline in cryptocurrency prices.

The total annual obligations to its security holders already exceed $1.2 billion. Independent analysts are urging investors to treat Saylor's marketing with caution, pointing to a serious opportunity-cost factor. The traditional U.S. S&P 500 index rose 22% over the same 12-month period with incomparably lower volatility.