News: MicroStrategy revealed that a 2.05% annual increase in Bitcoin (BTC) would enable the company to perpetually cover all preferred stock dividends without issuing new common stock. Chairman Michael Saylor shared this information alongside a chart illustrating the company’s 766,970 BTC reserve, valued at nearly $58 billion. The required Bitcoin Annual Return (ARR) is approximately 2.05%. MicroStrategy currently holds 766,970 BTC with an average cost basis of $75,648 per token, totaling nearly $54.58 billion. The STRC preferred stock yields 11.5% annually. Funds from STRC issuance are used to purchase additional Bitcoin. Saylor’s posts often precede 8-K filings revealing new large BTC purchases.
AI Analysis: This suggests MicroStrategy’s financial viability is increasingly tied to Bitcoin’s performance, but the low hurdle rate (2.05%) indicates a strong potential for continued dividend payments even with moderate Bitcoin price appreciation.
