Strategy may sell BTC to cover ~$1.5B STRC dividends as buying continues
Strategy could sell BTC for the first time to fund about $1.5B of annual dividend obligations tied to STRC, its ~11.5% perpetual preferred stock. That dividend burden is estimated at roughly 2.2% of its current BTC portfolio value.
Despite the potential BTC sales, Michael Saylor says Strategy will generally follow “buy more than you sell.” The firm also plans to use STRC issuance and additional equity funding to offset any BTC sold for dividends.
Market focus is whether Strategy can sustain its BTC accumulation pace. In 2026, it has already bought 145,834 BTC (~$11B) and now holds 818,334 BTC worth $65B+, making it the largest corporate institutional BTC holder. TD Cowen raised its MSTR price target to $395 and lifted expected BTC Yield to 18.2% for fiscal 2026 (and 9.6% for 2027), with a baseline assuming BTC near ~$140,000 by year-end.
For traders, the key variable is BTC price versus the ~$140,000 target. A weaker BTC path could worsen the dividend math and pressure the bullish MSTR outlook, while a rising BTC premium would likely reinforce Strategy’s leverage effect.
Bullish
Strategy’s potential BTC sales are framed as a manageable offset against continued heavy buying, not a reversal of the corporate accumulation model. The dividend obligation (~$1.5B/year) is small relative to Strategy’s $65B+ BTC portfolio, and Saylor’s “buy more than you sell” approach—supported by STRC issuance and equity raises—suggests net BTC demand should remain intact if buying pace continues.
Short term, the story can support sentiment for BTC and MSTR because the market is likely to interpret STRC-linked financing as reinforcing, rather than disrupting, the BTC acquisition plan. Long term, TD Cowen’s higher BTC Yield expectations and $395 MSTR target rely on BTC staying near the ~$140,000 baseline; that creates a positive feedback loop for the bull case when BTC is strong. The main risk is if BTC fails to track the target path, worsening dividend math and reducing the credibility of the outlook—this would be mildly bearish to MSTR-specific trades, but the overall setup remains supportive.