Mortgage your home for dividends? Strategy CEO’s pitch raises eyebrows
On March 10, 2021, Strategy (formerly MicroStrategy) founder Michael Saylor encouraged investors to use leverage and even mortgage their homes to buy bitcoin (BTC). Five years later, the companys CEO Phong Le is talking about mortgages again, but this time in relation to buying Stretch (STRC) instead of BTC. Le talked about STRC, a stock with no guarantees of principal repayment that currently pays variable, 11.5% annualized dividends, on Natalie Brunells popular Bitcoin show. “It almost looks like a paycheck, right? It‘s just coming in,” Le claimed in an incredible comparison of income to STRC’s variable dividends that his board of directors may suspend at any time. He also recommended STRC to people who “might have a mortgage to pay, or they might have utility bills to pay, or a car bill.” Then came the incredible changeover from Saylor‘s mortgage-for-BTC to CEO Le’s new mortgage-for-STRC. He told brunell: I, just last week, bought $250,000 of STRC. The reason I did it was just to sort of go through the experience, which I enjoy doing. I have monthly obligations. I have a 1.75% 30-year mortgage, right? And if I can, instead of paying down that mortgage, put it into an instrument that pays me 11.5%, thats 10x