MicroStrategy Doubles Down on Bitcoin Despite Recent Price Struggles

MicroStrategy, an enterprise software program agency turned Bitcoin treasury powerhouse, signaled its intention Sunday to deepen its guess on the flagship digital asset.

This transfer comes as the corporate’s huge $55 billion hoard hovers simply above its common buy worth.

Strategy Hikes STRC Dividend to 11.25% to Fuel Bitcoin Spree

In a put up on the social media platform X, Executive Chairman Michael Saylor shared a graphic captioned “More Orange.” Over the previous months, the billionaire has lengthy used similar phrases to hint at upcoming BTC acquisitions.

Notably, the corporate not too long ago marked a milestone of two,000 days since adopting its “Bitcoin Standard.”

Meanwhile, this potential acquisition comes because the agency’s stability sheet faces its most important check in months.

Strategy’s present holdings of 712,647 BTC have been acquired at a mean value of $76,037 per coin. With BTC buying and selling at roughly $78,000 on Sunday—a pointy retracement from the six-figure highs seen final autumn—the agency’s unrealized positive factors have narrowed to lower than 3%.

To fund the following section of its purchases, Strategy moved to draw recent capital by mountaineering the dividend on its Series A Perpetual Stretch Preferred Stock (STRC) by 25 foundation factors. This adjustment brings the yield to 11.25% for February 2026.

The 11.25% payout represents a serious premium over typical company bonds, reflecting each the corporate’s starvation for capital and the inherent volatility of its bitcoin-centric mannequin.

Notably, STRC is a variable-rate safety that’s a part of a “fixed-income” suite that features products like Strike, Stride, and Strife, has grow to be the first engine for the agency’s capital raises.

Data exhibits that STRC gross sales alone have funded the acquisition of over 27,000 BTC because the product’s November debut.

However, critics warn that the high value of servicing these dividends might create a big cash-flow squeeze. This threat is especially acute if the BTC’s price remains stagnant or dips below the firm’s $76,000 waterline.

For now, Strategy seems undeterred. The agency nonetheless has billions in accessible capability beneath its at-the-market choices, and Saylor’s newest sign means that for Strategy, the one response to market volatility is to purchase extra.

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