to leave a comment.
▲ Saylor and Bitcoin/ChatGPT Generated Image
According to crypto media outlet BeInCrypto on July 8 (local time), MicroStrategy co-founder and chairman Michael Saylor presented Bitcoin Breakeven Annual Rate of Return (BTC Breakeven ARR) as a key metric. Saylor stated, “One of the most misunderstood metrics among MSTR indicators is the Bitcoin Breakeven Annual Rate of Return. If Bitcoin rises faster than 3.3% over the long term, STRC dividends can be paid indefinitely from capital gains.”
The Bitcoin Breakeven Annual Rate of Return is a metric derived by dividing the annual preferred stock dividend obligation of approximately $1.76 billion by MicroStrategy's Bitcoin holding value. MicroStrategy currently holds 843,775 BTC, an increase of over 25,000 BTC from the 818,334 BTC disclosed during its earnings announcement last May.
According to MicroStrategy's calculations, even if the Bitcoin price increase remains at 0%, dividends can be paid for approximately 31 years using its held assets and a cash buffer of $2.55 billion. The cash buffer alone can cover about 17 months of dividends, and the company has paid preferred stock dividends 23 consecutive times since early 2025, with cumulative payments exceeding $693 million.
The dividend burden has grown steeply. MicroStrategy's preferred stock dividend for Q1 2026 surged to $229.5 million from $10.6 million in the same period last year, and the volume of issued preferred stock has exceeded $13.5 billion. JPMorgan warned that MicroStrategy's Bitcoin selling policy could add up to $1.25 billion in selling pressure.
STRC paid an annualized interest rate of 11.5% last May but fell short of its $100 par value target, while Bitcoin has dropped approximately 49% from its peak in October last year. BeInCrypto reported that in the future dividend payment process, it may become clear whether the burden leans more towards Bitcoin sales or capital gains.
[Article Key Summary]
-Saylor claimed that if Bitcoin rises by more than 3.3% annually, STRC dividends can be paid indefinitely from capital gains.
-MicroStrategy holds 843,775 BTC and a $2.55 billion cash buffer, with an annual preferred stock dividend obligation of approximately $1.76 billion.
-The preferred stock dividend for Q1 2026 surged to $229.5 million from $10.6 million in the same period last year, and JPMorgan warned of up to $1.25 billion in selling pressure.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.