Michael Saylor says Strategy sustains dividends forever with minimal Bitcoin gains. Firm holds 713,502 BTC after reporting $12.4B quarterly loss.
Michael Saylor dropped a bombshell during Strategy’s earnings call. The company sustains dividend payments indefinitely with 1.25% annual Bitcoin growth. Strategy reported a crushing $12.4 billion net loss for Q4 2025. Shares plunged 17.12% in aftermarket sessions.
Bitcoin crashed to $63,596.56 on February 6, 2026. The digital asset shed 13% in 24 hours. Strategy’s holdings dipped below purchase costs for the first time since 2023. The cryptocurrency posted its ugliest single-day drop since June 2022.
Strategy stockpiles roughly $45 billion in Bitcoin reserves. CEO Phong Le broke down the math during the investor call. Annual dividend bills total $888 million across preferred equity instruments.
According to BSCNews on X, Bitcoin reserves cover dividends for 67 years straight. The firm needs merely 1.5% yearly Bitcoin appreciation to maintain payouts. Strategy sells tiny portions of holdings to fund distributions. Saylor claimed the company enjoys “80 years to figure out” alternatives if Bitcoin flatlines completely.
Strategy built a $2.25 billion cash war chest in Q4 2025. This buffer covers 30 months of dividends without Bitcoin sales. CFO Andrew Kang assembled this reserve specifically for volatile market periods.
Mark-to-market accounting hammered Strategy’s quarterly results. Net losses ballooned to $12.6 billion in Q4 2025. Operating deficits reached $17.4 billion during the period. Earnings per share crashed to -$42.93 against $2.97 forecasts.
The software division delivered impressive gains despite chaos. Revenue hit $123 million, crushing estimates by 3.53%. Subscription services surged 62.1% year-over-year to $51.8 million. Cloud offerings jumped 65% compared to last year.
Strategy accumulated 713,502 Bitcoin by February 1, 2026. Total purchase costs touched $54.26 billion across acquisitions. Average buy price clocked in at $76,052 per coin. The corporate giant controls 3.4% of Bitcoin’s ultimate supply.
Strategy carries $8.2 billion in convertible bonds currently. Net obligations sit at $6 billion after subtracting cash. The firm operates at roughly 13% leverage using today’s Bitcoin valuations.
Phong Le stacked the strategy against industry standards during discussions. Top-tier AAA companies leverage at 23% typically. Lower-rated BBB firms push 32% leverage ratios. Tech sector players average 15.7% borrowed capital.
Convertible debt costs Strategy just 42 basis points annually. Maturities stretch from 2027 through 2032 evenly. Zero restrictive covenants constrain the company’s strategic moves.
Bitcoin must crate 90% to $8,000 before threatening debt coverage. Strategy would restructure obligations or tap equity markets at that threshold.
Strategy scooped up $25.3 billion throughout 2025 aggressively. The company dominated U.S. equity markets as the top issuer. Strategy captured 8% of all American equity raises. January 2026 alone brought $3.9 billion and 41,002 additional Bitcoins.
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