MicroStrategy Reaches $63.46B Bitcoin Treasury Record, Faces 11.5% Dividend Warning
MicroStrategy's Bitcoin holdings reached a record $63.46 billion with 815,061 BTC at an average cost of $75,528, adding 34,164 BTC for $2.54 billion last week to secure a $1.9 billion unrealized gain. Peter Schiff warns its 11.5% STRC dividend model risks a death spiral unless Bitcoin sales or equity issuance continue.
1. Bitcoin Holdings Surge
As of April 26, MicroStrategy holds 815,061 BTC valued at $63.46 billion, with an average cost basis of $75,528 per coin. The company added 34,164 BTC for $2.54 billion last week—its largest weekly purchase in 17 months—driving a $1.9 billion unrealized gain.
2. Funding Strategy and Capital Raises
The April acquisition was financed through a $2.18 billion sale of STRF perpetual preferred equity and $366 million raised via at-the-market MSTR share offerings, sidestepping dilutive common stock issuances. Executive Chairman Michael Saylor cites a 9.5% year-to-date Bitcoin yield as proof of growing BTC-per-share for equity holders.
3. Dividend Model and Criticisms
Peter Schiff argues that the 11.5% STRC preferred dividend structure is unsustainable, warning it may force Bitcoin sales or continual equity issuances to cover payouts. Critics warn this dynamic could trigger a "death spiral" under credit-market stress or rising interest rates.