MicroStrategy's Bitcoin Reserve Value Growth Required to Service Preferred Dividends is 2.05%
SW
Sienna Winslow
crypto IRS ruling · Apr 13, 2026
Source: DojiDoji Data Terminal
Preferred stock dividends for MicroStrategy's Variable Rate Series A Perpetual Preferred Stock (STRC) can be covered indefinitely by an annual Bitcoin appreciation of 2.05%. This threshold is the company's BTC Breakeven Annual Rate of Return (ARR).
MicroStrategy's reserve of 766,970 BTC, valued near $54.58 billion, was acquired at an average price of $75,648 per coin. The company uses proceeds from the issuance of STRC, which yields 11.5% annually, to purchase additional Bitcoin.
If Bitcoin grows faster than 2.05% over time, the company can service these high-yield dividends without issuing new common shares.
crypto IRS rulingMichael Saylor
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