Strategy Signals Further Bitcoin Accumulation Amid Low Dividend Hurdle

Strategy co-founder Michael Saylor has signaled an imminent increase in the company's Bitcoin holdings, utilizing a social media post to hint at further acquisitions. This move follows a pattern of aggressive accumulation that has seen the firm absorb a significant portion of the available BTC supply. The company currently holds 766,970 BTC with a blended cost basis of $75,644. While this has resulted in $14.5 billion in unrealized losses as disclosed in a first-quarter SEC filing, the firm continues to buy at a pace that far exceeds global production. In March alone, Strategy acquired 46,233 BTC, nearly triple the 16,200 BTC produced by the global mining network during the same period. Central to this strategy is the STRC preferred equity product. Saylor revealed that the breakeven annual return rate for this product is approximately 2.05%. As long as Bitcoin appreciates beyond this modest threshold, the company can cover its preferred dividends indefinitely without the need to issue additional MSTR shares. The funding model relies heavily on investor appetite for STRC, which saw substantial inflows around its recent ex-dividend date. With Bitcoin trading near $71,800 and maintaining support above $70,000 following a ceasefire in Iran, Strategy may push its total holdings past 800,000 BTC before the end of April.