CoinDesk Podcast Network BITCOIN SEASON 2: Saylor Is Lapping The Bitcoin Treasury Competition
Jul 26, 2025
Dive into the financial maneuvers of MicroStrategy as they juggle $400M in annual dividends against $111M in revenue. Explore the implications of Michael Saylor's bold preferred stock strategy and how it impacts Bitcoin treasury companies. With 145 institutions now hoarding 10% of the total Bitcoin supply, is this another bubble in the making? The podcast also teases the innovative ideas around tokenization and reflects on Bitcoin's evolving role in traditional finance. Will this trend lead to sustainable growth or chaotic risks?
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MicroStrategy's Preferred Stock Strategy
- MicroStrategy shifted from convertible notes to preferred stock issuing at 8-10% dividend yields.
- Preferred stocks pay dividends though the company’s core business revenue can't cover them.
Dividend Burden Exceeds Revenue
- MicroStrategy faces $300M-$400M in annual preferred stock dividends but earns $111M revenue.
- Dividends won’t be covered by profits, forcing reliance on dilution, debt, or Bitcoin sales.
Saylor's Bitcoin Sell Silence
- Michael Saylor refuses to say if MicroStrategy will sell Bitcoin to cover dividends.
- Selling Bitcoin contradicts his previous staunch no-sell stance; reality may force compromise.