Michael Saylor’s Bitcoin Plan Has A Cost — Strategy Must Pay $689M Just To HODL
Strategy Inc. (NASDAQ:MSTR) faces rising costs to maintain its massive Bitcoin (CRYPTO: BTC) treasury, with annual obligations now topping $689 million, according to a new report.
Company’s Bitcoin Treasury Comes With Heavy Burden
Strategy Inc., formerly MicroStrategy, holds about $66 billion in bitcoin and plans to never sell its holdings.
That goal, however, comes with large yearly cash commitments for debt coupons, preferred dividends, and operating costs.
According to Protos, Strategy reported annualized dividend and interest expenses of $689 million as of Oct. 24, a figure expected to grow.
Executive chairman Michael Saylor has pledged continued Bitcoin accumulation, but new acquisitions add more preferred dividend obligations each quarter.
The company’s own forecast suggests these costs will reach several billion dollars over time.
Dependence On Equity Sales For Funding
Strategy generates limited income from …
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