MicroStrategy Faces Dividend Sustainability Concerns Amid Financial Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy MSTR?
Source: Benzinga
MicroStrategy's stock is down 6.94% in pre-market trading, hitting a 52-week low amid broader market declines, with the Nasdaq-100 down 0.88% and the S&P 500 down 0.61%.
Economist Peter Schiff has raised concerns about how MicroStrategy (NASDAQ:MSTR) can sustain its 11% annual dividend on preferred stock given ongoing financial losses, which could impact future cash flow and investor confidence. The company's stock has halved in value over the past six months, significantly underperforming Bitcoin itself, raising questions about its profitability and prompting investors to reassess their strategies. Additionally, MicroStrategy is set to release its fourth-quarter financials next Thursday, which will be closely monitored by the market.
The implications of these concerns are significant, as they may lead to a further decline in investor confidence and stock price volatility. The upcoming financial report will be crucial in determining whether the company can maintain its dividend policy and stabilize its stock performance.
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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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- 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.
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