MicroStrategy raised $20.8 billion! The dividends are enough to cover 72 years, MSTR stock price pumps 5% daily.

The pioneer of Bitcoin reserve strategies, MicroStrategy (MSTR), has raised a substantial amount of $20.8 billion this year, which includes $11.9 billion in common stock. Additionally, the five perpetual preferred stocks launched by MicroStrategy this year have also played a significant role, although the annualized dividend yield of over 8% has raised some doubts. To demonstrate its ability to pay dividends, MicroStrategy has launched real-time information on its official website, proving that at the current Bitcoin price of $88,221, the company has enough funds to pay dividends for 72 years.

$20.8 billion fundraising structure breakdown: common stock and preferred stock dual approach

(Source: MicroStrategy Official Website)

The pioneer of Bitcoin reserve strategies, MicroStrategy, has raised a substantial amount of $20.8 billion this year, a scale that is extremely rare in the annual fundraising of publicly listed companies in the United States. The sources of funds are $11.9 billion from common stock MSTR, $6.9 billion from preferred stock, and $2 billion from convertible bonds. This diversified fundraising structure demonstrates MicroStrategy's operational capability in the capital markets and the recognition of its Bitcoin strategy by investors.

The $11.9 billion fundraising of common stock MSTR is a core part, accounting for 57% of the total fundraising amount. MicroStrategy has raised funds through multiple issuances of common stock, utilizing the premium effect of MSTR's stock price. As the purest Bitcoin concept stock in the market, MSTR's trading price often significantly exceeds its net asset value (NAV) of Bitcoin holdings, providing the company with excellent financing opportunities. When MSTR's stock price has a 2x premium relative to NAV, issuing new shares is essentially purchasing $2 worth of Bitcoin for $1, a type of arbitrage space that traditional enterprises cannot enjoy.

The $6.9 billion fundraising for preferred shares is a significant innovation this year. MicroStrategy has launched five perpetual preferred shares, boasting an annualized dividend rate of over 8%. Preferred shares sit between bonds and stocks, with holders enjoying fixed dividends but usually lacking voting rights, and having a repayment priority superior to common stock in the event of company liquidation. An 8% dividend rate is highly attractive in the current low-interest-rate environment, appealing to conservative investors seeking stable income. However, this also raises questions: Can MicroStrategy sustain such high dividend payments in the long term?

The $2 billion convertible bond, although small in scale, provides additional financing flexibility. Convertible bondholders can choose to convert their bonds into common stock under specific conditions, a structure that benefits investors when MSTR's stock price rises and provides fixed income protection when the stock price falls. For MicroStrategy, the interest rate on convertible bonds is usually lower than that of pure bonds, reducing financing costs.

MicroStrategy 2025 Fundraising Structure

Common Stock MSTR: 11.9 billion USD (57%)

Perpetual Preferred Shares: 6.9 billion USD (33%)

Convertible Bonds: 2 billion USD (10%)

Total fundraising amount: 20.8 billion USD

The Bitcoin Appreciation Logic Behind 72 Years of Dividend Payment Ability

To demonstrate its ability to pay interest, MicroStrategy's official website released real-time information: “At the current Bitcoin price level of $88,221, the company has enough funds to pay dividends for 72 years. Any increase in Bitcoin price exceeding 1.39% per year will completely offset MicroStrategy's annual dividend payment obligations.” This argument is very persuasive because it links the ability to pay interest to the price of Bitcoin rather than relying on the company's operating cash flow.

The calculation logic for the 72-year dividend is as follows: Assuming the total annual dividends to be paid for the five preferred stocks is about 550 million USD (6.9 billion USD principal × 8% annual dividend rate), and the current value of Bitcoin held by MicroStrategy is approximately 40 billion USD (assuming it holds about 450,000 Bitcoins). 40 billion USD ÷ 550 million USD ≈ 72 years. This means that even if the price of Bitcoin does not increase at all, the company can pay the preferred stock dividends for 72 years using its existing Bitcoin assets.

The more critical argument is that “any increase in Bitcoin price exceeding 1.39% per year will completely offset the annual dividend payment obligations.” This calculation is based on simple math: $550 million ÷ $40 billion ≈ 1.39%. If Bitcoin rises more than 1.39% each year, the appreciation of the company's Bitcoin assets will exceed the dividends that need to be paid, resulting in net asset growth. Historically, the annualized return of Bitcoin has far exceeded 1.39%, with an average annualized return of over 100% in the past decade. Even more conservative institutional forecasts believe that Bitcoin's long-term annualized return will be between 20% and 30%.

This discourse transforms MicroStrategy's dividend payment capability from the traditional “operating cash flow” model to the “asset appreciation” model. Traditional companies rely on business profits to pay dividends, while MicroStrategy relies on the rising price of Bitcoin to pay dividends. As long as the long-term upward trend of Bitcoin remains unchanged, this model is sustainable. However, if Bitcoin enters a long-term bear market or sideways movement, MicroStrategy may be forced to sell Bitcoin to pay dividends, thereby weakening its core asset base.

Saylor Responds to Coin Selling Rumors: Sticking to Bitcoin Strategy Unwaveringly

MicroStrategy did not announce any coin buying progress this week. Although the recent drop in Bitcoin has sparked rumors of selling coins, founder Michael Saylor personally responded, calling it just a rumor and stating that MicroStrategy has always been buying Bitcoin. In the face of recent market skepticism, Michael Saylor posted a message shouting, “I will not back down!” and used a picture from the polar regions to imply that he is working hard to endure. He referred to volatility as a gift from Satoshi Nakamoto to the believers.

Saylor's response is highly infectious, demonstrating his unwavering faith in Bitcoin. “Volatility is a gift from Satoshi to the believers” has become a golden quote in the crypto community, as it reframes price fluctuations from a risk to an opportunity. For long-term believers, Bitcoin's short-term volatility offers a chance to buy at a low price rather than a reason to panic sell. Saylor reinforces the brand image of MicroStrategy as a Bitcoin concept stock through this narrative.

“I will not back down” is also a direct response to market skepticism. When Bitcoin fell from $106,000 to $82,000, many analysts questioned whether MicroStrategy would be forced to reduce its Bitcoin holdings to pay off debts or distribute dividends. Saylor's firm statement alleviated such concerns, sending a clear signal to the market: MicroStrategy's Bitcoin is for buying and not selling. This steadfast position provides significant support for MSTR's stock price, as the core logic for investors buying MSTR is their optimism regarding the appreciation potential of its Bitcoin holdings.

Yesterday, as Bitcoin rebounded to 89K, MSTR's stock price also rose by 5% to close at 179 dollars. This linkage effect proves MSTR's property as a Bitcoin concept stock. When Bitcoin's price rebounds, MSTR's stock price tends to amplify this increase, as the market values not only its Bitcoin holdings but also pays an additional premium for its unique business model and brand premium. The 5% single-day increase indicates that investors' confidence in MicroStrategy is recovering, and the market believes the worst moments are over.

The Unique Business Model and Risks of Bitcoin Concept Stocks

MicroStrategy's business model stands out in the capital markets. The company has essentially transformed from a traditional business intelligence software company into a Bitcoin investment tool. When investors buy MSTR stock, they are essentially purchasing a leveraged Bitcoin exposure. The advantage of this model is that investors can buy MSTR through traditional brokerage accounts without the need to open a cryptocurrency exchange account or deal with the complexities of private key management. For institutional investors who cannot or do not want to hold Bitcoin directly, MSTR provides a compliant and convenient investment avenue.

However, this model also comes with significant risks. The first is leverage risk; MicroStrategy purchases Bitcoin by issuing preferred stock and convertible bonds, which is equivalent to investing with borrowed money. If the price of Bitcoin declines over the long term, the company may face the risk of debt default or being forced to sell Bitcoin at a loss. The second is liquidity risk; the $20.8 billion fundraising requires continuous purchases of Bitcoin, and if market liquidity is insufficient, large-scale buying may drive up costs. The third is regulatory risk; if U.S. regulators impose restrictive policies on Bitcoin, MSTR, as a U.S. publicly traded company, will be the first to bear the brunt.

Despite these risks, MicroStrategy's strategy has still gained market recognition. This reflects two trends: first, institutional investors' acceptance of Bitcoin as a long-term asset allocation tool is increasing. Second, after the launch of Bitcoin ETFs, the market still needs tools to provide leveraged exposure to Bitcoin, and MicroStrategy perfectly fills this demand.