Michael Saylor: Why Strategy Will Never Need to Sell Bitcoin to Pay Dividends

Strategy just dropped its December 1, 2025 company update and it's one of the most important ones yet. The company now holds 650,000 Bitcoin valued at approximately $59 billion after adding another 130 BTC this week. Michael Saylor and President & CEO Phong Lee revealed a major new pillar of the strategy: a $1.44 billion USD cash reserve raised in just 12 days through accretive equity issuance at an average 1.17x MNAV. This USD reserve acts as a buffer to cover 21+ months of preferred dividends and interest without ever touching the Bitcoin treasury, effectively ending the biggest remaining criticism: "What if Strategy has to sell BTC to pay dividends?"

Saylor explains in detail why the company will never need to sell Bitcoin to fund dividends again. With access to three massive liquidity pools (equity markets at $3.6B daily volume, Bitcoin commodity markets at $50B+ daily, and BTC derivatives at $100B+ daily), Strategy can cover the roughly $800M annual dividend obligation with a tiny fraction of any single market. Even if equity ever trades below 1x NAV, they can tap Bitcoin or derivatives and still increase Bitcoin per share over time through ongoing issuance of high-yield digital credit instruments (Stretch, Strife, Stream, Strike, Stride).

Key highlights from the call:
• 650,000 BTC total holdings ($59B NAV)
• New $1.44B USD reserve = 21 months of dividend coverage
• 2025 BTC yield revised to 22-26% (from original 30% target)
• GAAP earnings guidance updated for BTC price range of $85K-$110K
• 74 years of dividend coverage at 0% BTC appreciation; forever with just 1.35% annual growth
• Only 1.4% annual BTC appreciation needed for perpetual shareholder value creation
• Enterprise value $68B with ultra-low 22-23% total LTV

This update cements Strategy as the world's first scalable digital credit vehicle, backed by the largest corporate Bitcoin treasury and now shielded by a growing USD buffer that removes volatility risk for credit and preferred investors. The mission remains clear: stack more Bitcoin forever while delivering smooth, reliable yields.

Timestamps:
0:00 - Company Update Intro & BTC Holdings
0:29 - Now 650,000 Bitcoin Worth $59 Billion
0:42 - Updated BTC Price Assumptions & Guidance
1:29 - BTC Yield Target Lowered to 22-26%
2:12 - BTC Dollar Gain & GAAP Earnings Outlook
3:14 - Earnings Scenarios Based on Year-End BTC Price
4:09 - Capital Structure & Conservative Leverage
5:58 - Announcing New USD Reserve for Dividends
6:06 - Raised $1.44B USD in Just 12 Days
7:48 - USD Reserve = 21 Months Dividend Coverage
8:26 - Michael Saylor on Digital Credit Strategy
8:53 - Credit Model Shows Extremely Low Risk
10:00 - Selling Equity Above 1x MNAV is Accretive
11:05 - Key Metrics: 74 Years BTC Coverage & More
13:08 - Digital Credit Vehicle Explained
14:30 - USD Reserve as "Battery" for Smooth Dividends
15:07 - Three Massive Liquidity Pools to Fund Dividends
17:14 - Yes, We Can & Will Sell BTC if Needed
18:39 - World's First Digital Credit Vehicle
21:07 - USD Reserve Upgrades Credit & Flexibility
21:48 - Continuing to Stack Bitcoin Forever
22:26 - Closing Remarks & Thank You

#MichaelSaylor #Bitcoin #MSTR

MICHAEL SAYLOR PLAYLIST:
   • Michael Saylor Videos  

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