MicroStrategy’s Bitcoin Treasury Reaches $63.46B as 11.5% Dividend Model Raises Risks
MicroStrategy's Bitcoin treasury climbed to a record $63.46 billion after acquiring 34,164 BTC for $2.54 billion, bringing its total to 815,061 coins at an average cost of $75,528 each. Analysts warn its 11.5% STRC dividend may require ongoing equity issuance or Bitcoin sales, risking share dilution and value erosion.
1. Record Bitcoin Treasury
MicroStrategy's Bitcoin treasury climbed to a record $63.46 billion as of April 26, reflecting 815,061 BTC at an average cost of $75,528 per coin and a $1.9 billion unrealized gain.
2. Peak Weekly Acquisition
Last week the company acquired 34,164 BTC for roughly $2.54 billion at an average price of $74,395 per coin, marking its largest single-week purchase in 17 months.
3. Financing Through Preferred Equity
MicroStrategy raised $2.18 billion via STRF perpetual preferred equity and $366 million through at-the-market sales of common shares to fund its latest Bitcoin purchases.
4. STRC Dividend Model Risks
The firm’s 11.5% STRC dividend yield requires ongoing capital raises or potential Bitcoin sales, raising concerns about shareholder dilution and sustainability under changing market conditions.