Odaily reported that Jiang Zhuoer published an analysis of MicroStrategy’s (MSTR) funding structure, focusing on the relationship between the company’s Bitcoin holdings and its STRC preferred-stock dividend obligations. According to Jiang, MSTR currently holds about $55 billion in Bitcoin assets, while the annual dividend expense linked to its STRC preferred shares is about $1.7 billion. On a purely theoretical basis, selling BTC could cover around 32 years of dividend payments.
STRC Is Treated as Preferred Stock, Not Debt
Jiang emphasized that STRC is a preferred-stock instrument rather than a debt instrument. Because of that structure, it does not carry the same compulsory principal repayment pressure associated with traditional debt. From this perspective, Jiang said MSTR does not face a “forced liquidation-style leverage risk” or an immediate repayment crisis.
The discussion, however, also reflects rising concern in the market over MSTR’s long-term cash flow and the volatility of crypto assets. STRC has already shown clear discounted price fluctuations, and the company’s refinancing capacity is constrained. Jiang’s comments distinguish between MSTR’s large Bitcoin reserve base and the market’s more cautious reading of how that structure functions over time.
Share Issuance and Bitcoin Per Share
Jiang also noted that MSTR has recently relied more on common-stock issuance and similar methods when increasing its BTC holdings. When mNAV is below 1, this approach may dilute the amount of Bitcoin represented by each share. For that reason, Jiang said the strategy is difficult to repeat over the long term on a sustained basis.
Even if the amount of BTC that MSTR actually sells to pay dividends is not large relative to the overall market, Jiang said the symbolic meaning may be more important. Such sales could put pressure on market confidence and lead investors to reassess the possibility of MSTR becoming a “long-term passive seller” of Bitcoin. The market does not share a single interpretation of this structure, and that gap in understanding may itself become an important factor affecting expectations and sentiment.