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    Home»Bitcoin»Strategy Turns to Costly Dividends to Keep Buying Bitcoin
    Bitcoin

    Strategy Turns to Costly Dividends to Keep Buying Bitcoin

    February 1, 20262 Mins Read


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

    This move comes as the company’s massive $55 billion hoard hovers just above its average purchase price.

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    Strategy Hikes STRC Dividend to 11.25% to Fuel Bitcoin Spree

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

    Notably, the company recently marked a milestone of 2,000 days since adopting its “Bitcoin Standard.”

    Meanwhile, this potential acquisition comes as the firm’s balance sheet faces its most significant test in months.

    Strategy’s current holdings of 712,647 BTC were acquired at an average cost of $76,037 per coin. With BTC trading at approximately $78,000 on Sunday—a sharp retracement from the six-figure highs seen last autumn—the firm’s unrealized gains have narrowed to less than 3%.

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    To fund the next phase of its purchases, Strategy moved to attract fresh capital by hiking the dividend on its Series A Perpetual Stretch Preferred Stock (STRC) by 25 basis points. This adjustment brings the yield to 11.25% for February 2026.

    The 11.25% payout represents a major premium over typical corporate bonds, reflecting both the company’s hunger for capital and the inherent volatility of its bitcoin-centric model.

    Notably, STRC is a variable-rate security that is part of a “fixed-income” suite that includes products like Strike, Stride, and Strife, has become the primary engine for the firm’s capital raises.

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

    Strategy's Bitcoin Purchases from STRC.
    Strategy’s Bitcoin Purchases from STRC. Source:STRC.live

    However, critics warn that the high cost of servicing these dividends could create a significant cash-flow squeeze. This risk is particularly acute if the BTC’s price remains stagnant or dips below the firm’s $76,000 waterline.

    For now, Strategy appears undeterred. The firm still has billions in available capacity under its at-the-market offerings, and Saylor’s latest signal suggests that for Strategy, the only response to market volatility is to buy more.



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