Strategy, formerly known as MicroStrategy, maintains the world's largest Digital Asset Treasury and has publicly committed to never sell...
Strategy, formerly known as MicroStrategy, maintains the world's largest Digital Asset Treasury and has publicly committed to never selling its substantial Bitcoin (BTC) holdings. While this commitment is a key tenet of its investment philosophy, it comes with a rapidly escalating and formidable annual price tag.
To service its $66 billion BTC treasury, the company currently incurs approximately $689 million in annual cash obligations. This massive sum primarily covers coupons owed to debtholders and high-yield dividends paid to preferred shareholders, with rates ranging from 8% to 10.5%. Crucially, the company's traditional software business revenues—less than $355 million in the first nine months of 2025—are insufficient to cover these towering financial requirements.
The Strategy to Fund HODLing
As Strategy continues its aggressive Bitcoin acquisition strategy, largely financed by issuing more preferred stock, its annual obligations are forecasted to rise into the billions of dollars.
To avoid selling any Bitcoin to cover these costs, the company must continually raise capital by selling additional equity. This entire mechanism relies on one key metric: the Multiple-to-Net Asset Value (mNAV). mNAV represents the premium investors are willing to pay for MSTR shares over the actual value of its underlying Bitcoin.
This premium reflects investor optimism that the management team, led by Michael Saylor, can continue to "accrete" additional Bitcoin per share on a dilution-adjusted basis (the "BTC Yield"), keeping the double-digit BTC yield target alive. Essentially, Strategy's financial viability hinges on sustained investor belief that the company can finance its ever-growing debt and dividend burden through equity sales, all without touching its core asset: Bitcoin.
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