Recent Bitcoin Purchase
MicroStrategy’s treasury vehicle bought an additional $90 million worth of Bitcoin last week, bringing its total holdings to 714,644 BTC, valued at roughly $49 billion at the current price of $68,829 per BTC.
Debt and Dividend Coverage Strategy
CEO Michael Saylor emphasized that the firm will continue buying Bitcoin each quarter and will not sell to fund operations. To safeguard against debt and dividend obligations, MicroStrategy has:
- 2.5 years of debt‑service and dividend coverage held in cash.
- Created a $1.44 billion USD reserve in December to pay dividends without touching Bitcoin.
- Strengthened the reserve by issuing common stock, extending its financial buffer.
Market Predictions and Sell‑off Risk
Analysts on Myriad assign a 28 % probability that MicroStrategy will sell Bitcoin before the end of 2026. This risk metric fell by about 7 % over the past week as Bitcoin rebounded from lows near $60,000.
Saylor’s contingency plan if Bitcoin were to plunge dramatically:
- If Bitcoin fell 90 % over four years, the company would refinance its debt.
- Even in an extreme scenario where Bitcoin dropped to $8,000, the firm would still refinance rather than liquidate.
Share Performance and Investor Sentiment
MicroStrategy’s stock (MSTR) traded around $134.58 on Tuesday, down roughly 2.7 % for the day and nearly 66 % over the past six months, reflecting market concerns about the large Bitcoin exposure.