Copyright Benzinga
Strategy Inc. (NASDAQ:MSTR) faces rising costs to maintain its massive Bitcoin (CRYPTO: BTC) treasury, with annual obligations now topping $689 million, according to a new report. Company's Bitcoin Treasury Comes With Heavy Burden Strategy Inc., formerly MicroStrategy, holds about $66 billion in bitcoin and plans to never sell its holdings. That goal, however, comes with large yearly cash commitments for debt coupons, preferred dividends, and operating costs. According to Protos, Strategy reported annualized dividend and interest expenses of $689 million as of Oct. 24, a figure expected to grow. Executive chairman Michael Saylor has pledged continued Bitcoin accumulation, but new acquisitions add more preferred dividend obligations each quarter. The company's own forecast suggests these costs will reach several billion dollars over time. Dependence On Equity Sales For Funding Strategy generates limited income from its core business, reporting less than $355 million in revenue during the first nine months of 2025. Most of its $12 billion in operating income came from unrealized bitcoin appreciation rather than core operations. To cover expenses, Strategy relies heavily on selling new equity — both MSTR common stock and preferred shares. Preferred stock offerings under tickers STRK, STRF, STRD, STRC, and STRE fund bitcoin purchases without immediate dilution. Yet each new preferred issue increases dividend commitments that must be paid in cash. Saylor has said the firm prefers equity to new debt because bonds require fixed coupon and principal payments. Shareholders Pay Premium To Hold Strategy Investors continue to buy MSTR shares at a notable premium to the firm's net Bitcoin value. This premium, called the mNAV multiple, reflects investor belief that Saylor can increase Bitcoin holdings per share. Currently, investors pay about 1.07x mNAV per share — or 7% above Strategy's direct Bitcoin exposure. Lawyers for the company have clarified that owning MSTR stock does not confer any legal claim over its Bitcoin reserves. Even so, investors value the shares higher on faith in management's ability to keep growing holdings. Technical Picture Turns Bearish Strategy Inc. Price Action (Source: TradingView) MSTR stock price has broken below its long-term ascending support line that held since early 2024. The price now sits under all key exponential moving averages, creating a heavy resistance band between $283–$331. Immediate support lies between $250–$235; failure to defend that range risks a deeper move toward $210–$195. A daily close above $283 would invalidate the breakdown and restore bullish structure. Until then, momentum remains with sellers as the chart trends lower alongside broader crypto weakness. Read Next: The Business of ‘Knowing You’: AI Companions Fuel The Emotion Economy Image: Shutterstock
