Strategy Says 3.3% Annual Bitcoin Gain Could Fund Dividends Indefinitely
Strategy, formerly MicroStrategy, has accumulated bitcoin by issuing equity and debt, while paying investors dividends through its floating-rate perpetual preferred stock, STRC. With its annual preferred-dividend obligation closing in on $1.5 billion, the market has questioned whether the company will need to keep selling bitcoin to cover the payments. Its “BTC Breakeven ARR” has therefore become a key gauge of whether the financial model is sustainable.
On July 7, 2026, Executive Chairman Michael Saylor said the company held 843,775 bitcoin worth about $53.8 billion. He said annual bitcoin appreciation of more than 3.3% would generate enough capital gains to fund STRC dividends indefinitely. Even with a 0% return, its $2.55 billion cash buffer would allow it to cover the payments for about 31 years. The company sold 3,588 bitcoin from June 29 to July 5, raising $216 million.
All Coverage
1 original reportsThe Backstory
The history behind this eventMichael Saylor Hints at More Bitcoin Purchases, Outlines Strategy’s 2.05% Preferred-Stock Math
Strategy, formerly known as MicroStrategy, raises funds through debt, common-share issuance and preferred stock to buy bitcoin, making BTC its core treasury asset. Michael Saylor argues that as long as bitcoin’s long-term annualized return exceeds the 2.05% cost of its preferred stock, the company can continue paying dividends without issuing additional common shares and diluting shareholders.
According to its latest disclosure, Strategy holds more than 760,000 bitcoin and remains the world’s largest publicly traded corporate holder of the cryptocurrency. Saylor recently hinted again at further purchases. At its current pace of accumulation, the company is buying close to three times the amount of new bitcoin supply created over the same period, indicating that it continues to use low-cost preferred stock to expand its BTC position.
Strategy Holds STRC Dividend Rate at 11.5% to Fund Bitcoin Purchases
Strategy, the world's largest corporate holder of Bitcoin, launched perpetual preferred stock STRC in July 2025 to raise U.S. dollar funding through share issuance and buy more Bitcoin. STRC targets a price near its $100 par value, with its high dividend designed to attract income-focused investors while allowing the company to continue expanding its crypto holdings.
Strategy said STRC's annualized dividend rate would remain at 11.5% in April 2026, ending a run of seven consecutive increases since the product's launch. With STRC's market price gradually stabilizing and approaching its $100 par value, the company will not raise the rate this month but will continue using the stock as a fundraising vehicle for future Bitcoin purchases.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.
If you search news on Google, you can set Mark Radar as a preferred source—our coverage will show up more often in your results. Set as preferred source on Google →