MicroStrategy raises $ using 11.5% STRC to buy Bitcoin, Saylor: If BTC rises more than 2% year-over-year, that’s enough to pay dividends

Bitcoin Reserve Strategy’s Founder: MicroStrategy Strategy (original name MicroStrategy) announced an additional $1 billion to buy Bitcoin, bringing its total holdings to 780,897 Bitcoins. What’s special is that this fundraising is entirely done by selling its preferred stock STRC. According to what founder Michael Saylor said, Bitcoin’s breakeven-year recurring income (ARR) is approximately 2.05%. This means that as long as Bitcoin achieves a modest annualized growth rate, it can permanently cover STRC’s dividend payments, while also avoiding dilution of the equity interest of existing common shareholders.

Our BTC Breakeven ARR is ~2.05%. If Bitcoin grows faster than that over time, we can cover our dividends indefinitely without issuing new $MSTR shares. Track it in real time on our site. $STRC

— Michael Saylor (@saylor) April 12, 2026

MicroStrategy: A Pioneer of the Bitcoin Corporate Treasury Strategy

Strategy first introduced a policy in September 2020 to treat Bitcoin as the company’s primary reserve asset. Since then, the company has continued to buy Bitcoin through a variety of channels, including cash flows generated by its core business, as well as debt and equity financing. As the publicly listed company that currently holds the most Bitcoin worldwide, MicroStrategy’s asset allocation approach has attracted multiple companies to emulate it. The founder Michael Saylor’s core belief is that Bitcoin is “digital gold” and a highly scarce asset. He believes that a strategy of continuously buying Bitcoin can not only raise the company’s profile, but also create a long-term cycle of asset appreciation.

Financial Characteristics and Risk Management of the Preferred Stock STRC

The STRC used for this MicroStrategy fundraising is a floating-rate perpetual preferred stock. Its annualized dividend rate is currently 11.25%, and it features monthly dividend payments along with the ability for dividends to accumulate. However, it cannot be converted into MSTR common stock. From the perspective of corporate financial management, perpetual preferred stock can avoid the liquidity pressure of being forced to liquidate digital assets to repay principal during periods of weakness in the cryptocurrency market, because it has no clear maturity date. In addition, MicroStrategy defines the future distributions of the preferred stock as “return of capital” (ROC). In U.S. tax law, this is treated as a recovery of investment costs, providing investors with room for tax deferral. For investors in Taiwan, this addresses a long-standing pain point of high withholding taxes on U.S. stocks. As a result, the original high annualized dividend yield of 8% to 11% can be fully kept, without being eroded by the 30% withholding tax.

(Buy MicroStrategy preferred stock for 10% high dividend yield—Taiwan investors don’t pay 30% dividend tax)

Fundraising Strategy Shift and the Strategic Significance of a 2.05% Breakeven

Last week, Strategy raised net proceeds of roughly $1 billion by selling STRC preferred stock, and used all of it to increase its Bitcoin holdings. The core significance of using preferred-stock financing entirely is that the company can expand its asset scale without issuing new MSTR common stock, thereby preventing existing shareholders’ equity and the amount of Bitcoin per share (BPS) from being diluted.

The 2.05% breakeven ARR also provides a quantitative benchmark: as long as Bitcoin’s year-over-year appreciation rate stays above this threshold, the company can support the capital cost of the high-yield preferred stock through asset appreciation. This kind of leveraged approach that combines traditional fixed-income instruments with highly volatile digital assets reflects an innovative attempt in its capital structure—so you could say Saylor is truly a “financial genius”!

This article: MicroStrategy raises funds with 11.5% STRC to buy Bitcoin, Saylor: Over 2% annual growth in BTC is enough to pay dividends. First appeared in Chain News ABMedia.