MicroStrategy, led by executive chairman Michael Saylor, revealed a detailed model for sustaining its dividend payments indefinitely during its Q4 2025 earnings call, even as the company reported a massive quarterly loss driven by Bitcoin's price decline. The firm disclosed it needs Bitcoin to appreciate by just 1.25% to 1.5% annually to fund its $888 million yearly dividend bill from its massive holdings.
The company reported a net loss of $12.4 billion for Q4 2025, primarily due to mark-to-market accounting on its Bitcoin treasury, which held 713,502 BTC as of February 1, 2026. The average purchase price for its total holdings is $76,052 per Bitcoin, for a total cost of $54.26 billion. Following the earnings, MicroStrategy's stock (MSTR) plunged 17.12% in aftermarket trading.
CEO Phong Le explained the dividend math: the firm's roughly $45 billion in Bitcoin reserves could cover dividend payments for 67 years without any price appreciation. MicroStrategy sells small portions of its holdings to fund distributions and has built a $2.25 billion cash war chest in Q4 2025, which CFO Andrew Kang said could cover 30 months of dividends without any Bitcoin sales, acting as a buffer for volatile periods.
Despite the accounting loss, the company's core software business performed strongly, with revenue hitting $123 million (beating estimates by 3.53%) and subscription services growing 62.1% year-over-year. The firm also detailed its debt structure, carrying $8.2 billion in convertible bonds with an average cost of just 42 basis points annually and maturities stretching from 2027 to 2032.
In a separate but related development, Michael Saylor confirmed on February 8, 2026, that MicroStrategy had purchased an additional 1,142 BTC for approximately $90 million at an average price of $78,815 per coin. This brings the company's total holdings to 714,644 BTC, acquired for a total of ~$54.35 billion at an average cost of ~$76,056 per Bitcoin. This purchase, executed above the firm's long-term average cost, signals continued accumulation despite market volatility.
