Strategy has $580 million in dividend obligations

But where will the yield come from?

Author

Colin Harper
August 26, 2025

Presented by

Fractal Bitcoin

How much does Strategy owe preferred shareholders? We run the numbers.

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Strategy’s dividend obligations top $580 million

In early August, Strategy updated its MSTR guidance.

If the stock sat below a 2.5x mNAV, then Saylor’s firm said it would not issue new MSTR shares. (A carve out remained for raising money for dividends on its preferred shares, STRK, STRC, STRF, and STRD).

The guidance says the quiet part out loud: “We won’t dilute below 2.5x mNAV, unless we need cash to cover dividends.”

Strategy said the quiet part a little louder when it updated its guidance again last week, stating that it may issue MSTR under 2.5x mNAV when “deemed advantageous to the company.”

Same script, different lines. Strategy needs to consistently raise fresh capital to keep the train going. 

These preferred shares, unlike the MSTR common stock, pay dividends ranging from 8-10%.

After issuing more than 64 million shares across these preferred shares, Strategy has $588.7 million in dividend obligations as of August 25, 2025, according to data we cobbled together from Strategy's stock dashboards. 

So how does this stack up against the companies business revenue?

Strategy earned $225.55 million in revenue in the first half of 2025. Annualized, this nets out to just over $450 million. After we factor in the company’s cost of revenue ($69.72 million for the first half of 2025), Strategy’s income won’t come close to covering these dividends (nor will the $50.1 million in cash it had had on hand at the end of Q2).

So where could the payouts come from? Cue stock issuance and convertible notes. 

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