MicroStrategy, known for its Bitcoin treasury, plans to increase its holdings. Executive Chairman Michael Saylor hinted at more BTC purchases. The firm’s 2,000-day milestone of being on the “Bitcoin Standard” was recently celebrated. However, with BTC prices dropping, the company faces challenges in maintaining unrealized gains.

To fund further acquisitions, MicroStrategy raised dividends on its preferred stock to attract fresh capital. The 11.25% yield is higher than typical corporate bonds, reflecting the company’s need for capital. The variable-rate security STRC has been crucial in funding Bitcoin purchases, acquiring over 27,000 BTC since its launch.

Critics worry that servicing high dividends could strain cash flow if BTC prices drop below the firm’s purchase cost. The company’s reliance on STRC for capital raises poses a risk if Bitcoin prices stagnate or fall. The firm’s Bitcoin-centric model and high dividend payouts could lead to financial pressure if prices do not increase.

Read more at Yahoo Finance: MicroStrategy Doubles Down on Bitcoin Despite Recent Price Struggles