Strategy signals another bitcoin buy as company needs just 2% annual BTC growth to cover dividends

Strategy, led by Michael Saylor, is signaling an imminent Bitcoin purchase, having previously used "think bigger" posts to precede major acquisitions. The company currently holds 766,970 BTC at an average price of $75,644, resulting in approximately $14.5 billion in unrealized losses. Strategy is funding its Bitcoin accumulation through its STRC preferred equity product, which requires only about a 2.05% annual Bitcoin return to cover dividends. This funding model is efficient but vulnerable to price stagnation or decline. In March, Strategy acquired 46,233 BTC, nearly three times the amount produced by miners, highlighting its aggressive accumulation strategy. The company's breakeven annual return rate of 2.05% for its preferred equity product means it can cover dividends indefinitely if Bitcoin appreciates faster than this rate, without issuing new shares. However, this assumes continuous price appreciation, as sideways or declining prices for extended periods could strain the model.

(Source：CoinDesk)