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MSTR Retains Bitcoin, Declares Preferred Dividend As Michael Saylor Predicts $200 Trillion Market Cap For Bitcoin

Harrison BrooksTuesday, Mar 4, 2025 2:42 am ET
3min read

MSTR, BTM Closing Price


MicroStrategy (MSTR) has made headlines recently with its bold Bitcoin (BTC) strategy and CEO Michael Saylor's bullish predictions. The company, which started as a software provider, has transformed into a Bitcoin treasury company, amassing a significant amount of BTC and declaring a preferred dividend. Saylor's recent prediction of a $200 trillion market cap for Bitcoin has further fueled the company's aggressive approach to cryptocurrency investment.

MSTR's Bitcoin Holdings
MSTR began its Bitcoin journey in August 2020, converting its cash reserves into BTC. Since then, the company has aggressively bought and held BTC, becoming the largest corporate holder of the cryptocurrency. As of 2024, MSTR held around 252,220 BTC, worth approximately $244 billion at the time. This massive holding has contributed to MSTR's significant appreciation in stock price, with shares surging from around $220 in 2020 to over $473 in 2024.

MSTR's Preferred Dividend
In addition to its Bitcoin holdings, MSTR has declared a preferred dividend, further solidifying its commitment to the cryptocurrency. The preferred dividend, paid in the form of MSTR's Series A Perpetual Convertible Preferred STRK shares, provides investors with a stable, predictable income stream. This move has attracted long-term investors and enhanced MSTR's liquidity, making its stock more appealing to institutional investors.

Michael Saylor's Prediction
Michael Saylor, MSTR's CEO and a prominent Bitcoin bull, recently predicted that Bitcoin's market cap would reach $200 trillion in the next 20 years. This prediction has further emboldened MSTR's investment strategy, as the company seeks to capitalize on Bitcoin's potential growth. Saylor's confidence in Bitcoin's future has driven MSTR's aggressive capital raise efforts, including ATM equity offerings, convertible bonds, and Series A Perpetual Convertible Preferred STRK shares.

Risks and Benefits
MSTR's decision to retain its Bitcoin holdings and declare a preferred dividend has both potential benefits and risks. On the one hand, MSTR's aggressive Bitcoin strategy has led to significant appreciation in the company's stock price and overall valuation. On the other hand, Bitcoin's volatility has exposed MSTR to market fluctuations, and the company has recorded substantial impairment losses due to price fluctuations. Additionally, MSTR's reliance on capital raises to fund its Bitcoin purchases could lead to increased debt or equity issuance, potentially diluting the value of existing shares.

Conclusion
MSTR's decision to retain its Bitcoin holdings and declare a preferred dividend, coupled with Michael Saylor's bullish prediction, reflects the company's confidence in Bitcoin's long-term potential. While this strategy has led to significant appreciation in MSTR's stock price and overall valuation, it has also exposed the company to Bitcoin's volatility and potential risks. As MSTR continues to execute its aggressive Bitcoin strategy, investors should closely monitor the company's progress and the broader cryptocurrency market.
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Trishla_robert
03/04

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BloodForThCursedIdol
03/04
@Trishla_robert 😂
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DisabledScientist
03/04
$MSTR Either people who own MSTR have been holding since $540 and are still holding onto it, or they bought it after that. Either way, they're getting more and more desperate, and their losses are getting bigger every day. Instead of catching the bottom, they've fallen for a bear trap. They can't imagine it's anything other than what it is. Too proud to admit they were wrong, and too blind to see other points of view. In the end, they'll deny their mistakes and blame others for their situation. And in the end, they'll be out of money.
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AIONisMINE
03/04
$MSTR scam
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Ubarjarl
03/04
$MSTR With Republicans on board, we know that at these prices, there won't be much left, and we saw how yesterday one tweet can make the price jump hugely...I don't want to risk going against the U.S. government and probably against all governments worldwide because they'll follow our lead as Americans
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mrkitanakahn
03/04
@Ubarjarl How long you planning to hold MSTR? Curious if you're thinking short-term flip or long-term HODL.
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greyenlightenment
03/04
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Straight_Turnip7056
03/04
@greyenlightenment How long you think MSTR will hold BTC? Saylor's prediction is crazy, but curious if you have any timeline in mind.
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-Joseeey-
03/04
$MSTR Our first bitcoin bank stock
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CaseEnvironmental824
03/04
$MSTR saul won't sell lmao more like you're my exit cash I'll buy back at 79 tho
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EX-FFguy
03/04
$MSTR What a pump and dump here Sorry for being long instead of shorting this and losing 2.5K 🤮
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sesriously
03/04
MSTR's div in STRK shares is a game-changer. Liquidity boost for sure. 🚀]
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11thestate
03/04
MSTR's preferred dividend is a game-changer. Predictable income stream for investors while they hodl BTC with the big boys.
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Straight_Turnip7056
03/04
Preferred dividend is smart. Less risk, steady income.
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Terrible_Onions
03/04
@Straight_Turnip7056 Smart move, but MSTR's still risky due to BTC volatility.
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Terrible_Onions
03/04
@Straight_Turnip7056 Preferred div is cool, but Saylor's predictions are sus.
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smooth_and_rough
03/04
Saylor's $200 trillion BTC prediction is wild. 🚀 MSTR's strategy is all-in on Bitcoin's moonshot.
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ResponsibleCell1606
03/04
MSTR's BTC play is 🚀 or bust. Who's holding?
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BennyBiscuits_
03/04
Diversify, folks. $MSTR isn't the only BTC game.
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Airmang74
03/04
Saylor's prediction sounds far-fetched, but I'm intrigued.
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Particular-Ad-8433
03/04
@Airmang74 Do you think BTC will hit $200T?
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