Strategy (formerly MicroStrategy), which holds over 818,000 Bitcoin, could be forced to sell a portion of its BTC stash to cover an annual dividend obligation of $1.5 billion. The obligation stems from STRC, a perpetual preferred stock offering an 11.5% dividend yield, consuming 2.2% of the company's Bitcoin portfolio value. Michael Saylor publicly acknowledged this week that occasional bitcoin sales are a possibility to meet dividend payments — the first time the firm has explicitly signaled selling assets to service external liabilities.
BTC Buying Accelerates in 2026, Approaching $30B Yearly
Since January 2026, Strategy has acquired 145,834 BTC valued at roughly $11 billion, with most purchases below $75,000 per coin. JPMorgan analysts estimate total Bitcoin acquisitions for the year could approach $30 billion, surpassing the $22 billion accumulated over the previous two years. Purchases gained pace again in April, driven by favorable market conditions and financing opportunities. The current balance sheet shows 818,334 BTC worth over $65 billion, cementing Strategy's position as the world's largest institutional Bitcoin holder.
STRC Financing: No Dilution, but Hefty Interest Burden
The STRC perpetual preferred stock allows Strategy to buy Bitcoin without diluting common shareholders. Its nominal market value has exceeded $8.5 billion. However, the annual dividend obligation of $1.5 billion equals 2.2% of the Bitcoin portfolio. Saylor explained via social media that the company follows a "buy more than you sell" approach, purchasing enough Bitcoin through STRC and new equity issuances to more than offset any coins potentially sold for dividends. The sustainability of this model hinges on Bitcoin prices remaining high.
Price Target Raised to $395, Bitcoin at $140K by Year-End
TD Cowen analysts highlighted the funding model's higher-than-expected capital efficiency, raising the price target for Strategy's shares to $395 — a 110% increase from the prior close of $186.82. They also raised the expected Bitcoin yield to 18.2% for fiscal 2026 and 9.6% for 2027. The baseline scenario sees Bitcoin reaching around $140,000 by year-end, with a bullish target of $175,000. JPMorgan noted continued growth in retail and institutional interest. The key question is whether Strategy can sustain its current buying pace and how close Bitcoin gets to the $140,000 target. A steady BTC rise and share premium would amplify MSTR leverage; in the opposite scenario, the dividend math becomes challenging and the $395 target harder to reach.