Strategy Inc.'s Dividend Sustainability Questioned Amid Financial Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy MSTR?
Source: Benzinga
- Dividend Sustainability Concerns: Economist Peter Schiff questioned how Strategy Inc. (NASDAQ:MSTR) can sustain its 11% annual dividend on preferred stock amid ongoing financial challenges, which could impact future cash flow and investor confidence.
- Bitcoin-Backed Preferred Stock: Founder Michael Saylor highlighted on social media that the Bitcoin-backed preferred stock (NASDAQ:STRC) delivers an 11% annual dividend with a historical volatility of only 6%, indicating relative stability that may attract investors seeking low-volatility returns.
- Poor Stock Performance: Despite STRC's high dividend, MSTR's stock has halved in value over the past six months, significantly underperforming Bitcoin, reflecting market concerns about its profitability and potentially prompting investors to reassess their strategies.
- Upcoming Financial Report: Strategy Inc. is set to release its fourth-quarter financials next Thursday, with the market closely monitoring its financial health to determine if the company can continue its dividend policy, which will influence future stock price movements.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSTR is 453.17 USD with a low forecast of 229.00 USD and a high forecast of 705.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 106.990
Low
229.00
Averages
453.17
High
705.00
Current: 106.990
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc., formerly MicroStrategy Incorporated, is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. The Company’s Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The Strategy Mosaic offers data clarity and connection by eliminating trade-offs between flexibility, control, and speed.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Price Rebound: Strategy Inc Class A (MSTR) surged 26% to approximately $135 on Friday, although it remains below the long-term trend level of $302, indicating a resurgence of market optimism regarding the company's future performance.
- Strong Financial Position: Le emphasized that the $17 billion accounting loss was not a cash loss, highlighting Strategy's $2.25 billion cash reserve and a leverage ratio of 10-12%, showcasing a robust financial foundation.
- Accounting Rule Changes: With the FASB's approval of new fair-value accounting rules, expected to take effect in 2025, gains and losses from Bitcoin will be more accurately reflected in financial statements, which will enhance future financial transparency and market confidence.
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- Market Reaction: The corrected strategy has led to a 5% gain in the pre-market following the release of results.
- Impact of Results: The results have positively influenced investor sentiment, contributing to the market's upward movement.
See More
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- Bitcoin Recovery: Bitcoin stabilized in the $69,000-$71,000 range over the weekend after dropping below $61,000 on Thursday, indicating potential recovery after a severe sell-off, although trading volume fell by 32% in the last 24 hours, reflecting cautious investor sentiment.
- Ethereum Support Level: Ethereum oscillated between $2,066 and $2,148, with $2,000 acting as a strong support level, suggesting ongoing confidence in the asset, yet the overall market sentiment remains in 'Extreme Fear', which could impact future price movements.
- Market Liquidation: Over $336 million was liquidated from the market in the last 24 hours, with $236 million stemming from bearish short positions, highlighting pessimistic expectations among investors that may lead to further price volatility.
- Declining Open Interest: Bitcoin's open interest fell by 0.94% to $46.07 billion, more than 50% lower than its peak in October, indicating reduced market participation that could affect future liquidity and trading dynamics.
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- Financial Resilience: TD Cowen highlighted that Strategy has a cash reserve of $2.25 billion, which can cover nearly 17 months of fixed charges, showcasing the company's ability to withstand a significant downturn in Bitcoin prices.
- Designed Market Volatility: Analysts noted that Strategy's stock is designed to be 1.5 times more volatile than Bitcoin, meaning that while the stock outperforms during Bitcoin price increases, it underperforms during declines, necessitating cautious investor strategies.
- Emerging Digital Credit Engine: Strategy raised over $7 billion in preferred equity in fiscal 2025, indicating that its new “digital credit engine” will provide an alternative funding mechanism, enhancing its competitive edge in the market.
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