MicroStrategy said its Bitcoin holdings need only 2.05% annual growth to cover all preferred stock dividends indefinitely, highlighting the strength of its crypto-backed capital strategy.
The company holds 766,970 Bitcoin valued at roughly $58 billion, with the breakeven rate reflecting the minimum appreciation required to service dividend payments without issuing new shares.
“Our BTC Breakeven ARR is ~2.05%. If Bitcoin grows faster than that over time, we can cover our dividends indefinitely without issuing new $MSTR shares,”
Said MicroStrategy chairman, Michael Saylor.
The breakeven calculation is tied to dividend obligations on instruments such as its high-yield preferred stock, including STRC, which offers an annual yield of around 11.5% and funds further Bitcoin accumulation.
MicroStrategy’s model suggests that even modest long-term Bitcoin gains could sustain dividend payments while continuing to expand its holdings, reinforcing its leveraged exposure to the asset.
The firm’s dashboard indicates approximately 48.7 years of dividend coverage at current reserve levels, with an average acquisition cost of $75,648 per Bitcoin.
Saylor’s post also hinted at another potential Bitcoin purchase, as similar weekend disclosures have previously preceded formal filings announcing additional acquisitions.
At the time of reporting, Bitcoin price was $71,177.54.