- Strategy, the leading Digital Asset Treasury company, holds $66 billion in Bitcoin and does not plan to sell any of it.
- The company faces increasing annual costs of $689 million related to dividends, debt interest, and operational expenses.
- Strategy aims for a high bitcoin (BTC) yield, targeting 30% accumulation by the end of 2025.
- The company finances bitcoin purchases mainly through selling preferred shares, which adds to dividend obligations.
- The stock trades at a premium over net asset value (mNAV), reflecting investor optimism despite no legal claim on the firm’s bitcoin holdings.
Strategy, formerly MicroStrategy, announced it will continue holding its $66 billion bitcoin (BTC) treasury without selling. The company’s plan to maintain this approach comes with substantial annual costs necessary to service its holdings, reported at $689 million as of October 24, 2025.
These costs include coupon payments to debtholders, dividends paid to preferred shareholders, and other business expenses like operational costs, subscriptions, product support, and potential future taxes. The company intends to minimize taxes to preserve the return of capital dividend tax status for preferred shareholders.
According to Strategy’s credit disclosures, annual dividend and debt interest expenses total $689 million but are forecasted to rise into the billions in future years. Founder Michael Saylor has set ambitious bitcoin yield targets, with the company achieving a 26.1% BTC yield year-to-date and aiming for 30% by the year’s end.
To finance additional bitcoin acquisitions primarily, Strategy plans to sell preferred shares such as STRK, STRF, STRD, STRC, and STRE. These offerings provide capital without immediately diluting common shareholder equity. This approach, however, increases dividend obligations, which could grow by hundreds of millions as the company raises billions for more BTC purchases.
The company reported operating income of $12 billion in the first nine months of 2025, mostly from unrealized bitcoin appreciation. In contrast, actual revenue was under $355 million for the same period, indicating limited income from traditional business operations. Strategy relies largely on equity sales rather than debt issuance to meet its treasury servicing needs, with plans to equitize existing debt rather than issue new bonds.
On its Q3 earnings call, Saylor noted that selling common stock or preferred shares with discretionary dividends is preferable to bonds requiring fixed coupon payments and principal repayment. This strategy depends on investor confidence that Strategy can increase bitcoin holdings on a dilution-adjusted basis.
Investors gauge confidence through the multiple-to-Net Asset Value (mNAV) metric, which measures the premium paid for MicroStrategy stock relative to the value of its underlying bitcoin. Currently, shareholders pay about 7% more per share than the bitcoin it holds directly, rising to 30% premium after accounting for the company’s total enterprise value of debt and equity. Despite this premium, ownership of Strategy stock does not confer direct legal ownership of its bitcoin assets, as stated by the company’s legal counsel.
In summary, Strategy continues to accumulate bitcoin without selling but faces rapidly rising costs associated with supporting its treasury. The company has purchased bitcoin every quarter since Q3 2020 and intends to carry on indefinitely, yet these acquisitions add growing dividend obligations that already approach $700 million annually and are expected to escalate into billions.
For more details, visit Strategy’s debt page, credit disclosures, and financials.
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