MicroStrategy Issues $15.5B in Preferred Stock Since 2025, Faces $15B Annual Dividend Against $10B Cash

According to Odaily, since 2025 MicroStrategy has issued $15.5 billion in preferred stock to fund Bitcoin purchases, driving total debt and preferred stock obligations from $6.9 billion to $21.8 billion. The company currently holds 844,000 BTC (valued at $51.1 billion) but faces a critical cash flow gap: annual preferred stock dividends total $1.5 billion while cash reserves stand at only $1 billion, raising questions about the sustainability of the financing model.

Analysts warn that to cover growing dividend payments, MicroStrategy may need to issue additional preferred stock or sell Bitcoin holdings, potentially triggering a "death spiral" of continuous funding rounds. Meanwhile, common share dilution has accelerated dramatically, with outstanding shares rising 250% from 98 million to 353 million since the Bitcoin buying campaign began.