MicroStrategy issues new stock to buy Bitcoin, can the company withstand the heavy interest expenses on preferred stock?

The Bitcoin reserve strategy pioneer MicroStrategy Strategy (, originally named MicroStrategy), acquired 4,980 Bitcoins at a price of approximately 531.9 million USD, with an average cost of 106,801 USD. As of June 29, 2025, the Strategy holds a total of 597,325 Bitcoins. With the current preferred shares STRF, STRK, and STRD issued by the Strategy, it will allocate over 315.9 million USD in interest expenses in a year. And this is just the beginning; can the Strategy sustain such a heavy interest expense in the future?

Strategy to issue new shares and acquire 4,980 Bits

Strategy this time through issuance

Common stock MSTR raised 519 million dollars

8% convertible preferred stock STRK raised 28.9 million USD

10% preferred stock STRF raised 29.7 million USD

A total of 578.1 million USD was raised, which will be used not only for purchasing Bitcoin but also to pay dividends on preferred stock using the proceeds from the sale of common stock.

Strategy acquired 4,980 Bitcoins last week for approximately $531.9 million, with an average cost of $106,801, achieving a 19.7% BTC return year-to-date in 2025. As of June 29, 2025, Strategy holds a total of 597,325 Bitcoins, with a total cost of $42.4 billion and an average cost of $70,982 per Bitcoin.

The issuance of MSTR new shares pays special stock dividends

On June 2, 2025, the company's board of directors announced a quarterly cash dividend.

STRK shares at 2 dollars per share

STRF shares are approximately 2.64 dollars per share.

The dividend will be paid on June 30, 2025, to shareholders registered as of June 15. The calculation of the quarterly dividend for STRF shares takes into account the accumulated dividends since March 25, 2025 (the initial issuance date of STRF shares), therefore it is slightly higher than an annual interest of 10%. It appears that STRD, which was announced only in early June, will not distribute dividends this time.

(Strategy issuing preferred stocks, STRD does not guarantee dividends, will investors still buy it? )

Strategy uses the proceeds from the issuance of its common stock MSTR to pay dividends.

Every year, $300 million will be spent on preferred stock dividends.

The preferred shares STRF, STRK, and STRD that have been issued by Strategy have an annual dividend of 8~10%. Based on the current issuance principal, over 315.9 million dollars will be distributed as interest expenses in a year. And this is just the beginning; Strategy plans to issue a total of 21 billion dollars of STRK and 2.1 billion dollars of STRF, which will bring extremely heavy interest expenses to the company in the future.

However, investors seem very interested, with STRK rising nearly 15% to $121.01 yesterday, and STRF also increasing over 7% to $113.15, both significantly surpassing their redemption price of $100.

Preferred Stock Annual Interest Currently Issuance Principal ( million USD ) Estimated Annual Interest ( million USD ) STRF 10% 1,007 100.7 STRK 8% 1,220 97.6 STRD 10% 1,176 117.6 Total 3,403 315.9

This article discusses MicroStrategy issuing new stocks to buy Bitcoin. Can the company sustain the heavy interest expenses on preferred stocks? Originally appeared on Chain News ABMedia.