Strategy Inc. (Nasdaq: MSTR) executive chairman Michael Saylor says bitcoin only needs to appreciate faster than 3.3% a year for the company’s capital gains to fund its STRC dividends indefinitely, calling the metric behind that math one of the most misunderstood attached to the stock.
Key Takeaways
Saylor says BTC gains can fund STRC dividends forever if bitcoin appreciates faster than 3.3% annually.Strategy’s BTC Breakeven ARR has climbed from about 2.05% as preferred dividend obligations near $1.5B a year.Strategy sold 3,588 BTC for $216M in early July to cover payouts, its largest sale since abandoning ‘never sell.’STRC (Variable Rate Series A Perpetual Stretch Preferred Stock) sits at the center of that structure and is engineered to trade near a $100 par value. It has grown into the world’s largest preferred stock by market value at more than $8.5 billion (offering a variable monthly dividend that is the single biggest recurring claim on Strategy’s cash).
