Saylor: Structured Credit, Not Miners, Now Sets Bitcoin Price

Michael Saylor, executive chair of MicroStrategy, told investors that structured credit created by the company’s STRC preferred shares now absorbs newly mined Bitcoin and sets Bitcoin’s price rather than miner sales. MicroStrategy launched STRC in July 2025.

STRC’s notional value rose to about $10.5 billion in ten months, with roughly $2 billion issued in the most recent month, he added. The preferred shares pay a monthly dividend currently set at 11.5 percent; the dividend rate resets with the stated goal of keeping the share price near a $100 par value.

The company has structured STRC so that expected Bitcoin appreciation is converted into a tax-deferred yield for credit investors while proceeds are used to buy more Bitcoin. Company disclosures and Saylor’s remarks indicate MicroStrategy holds about $65 billion in Bitcoin and has bought more Bitcoin this year than miners produced.

In investor remarks, Saylor projected prolonged purchases, stating, “MicroStrategy will likely buy every bitcoin produced by miners until 2140.” He described a long-run pattern in which institutional credit demand absorbs organic Bitcoin issuance as mining rewards decline.

Critics and some analysts raised limits to the model. They noted demand for the preferred shares can weaken after dividend payouts, exposing the program to post-ex-dividend selling pressure. One critic estimated MicroStrategy’s cash reserves would fund current purchase rates for about 15 months.

Analysts warned the structure must scale through the next Bitcoin halving, expected in 2028, to maintain current buying without changing payout mechanics or adding new capital sources. Bitcoin’s protocol reduces miner rewards at scheduled halving events and will taper toward a fixed supply over decades.

Company officials point to rising STRC trading activity and steady retail flows as signs of broader buyer interest. Executives and outside observers will monitor cash flow, dividend resets and investor demand as measures of the product’s performance.