MicroStrategy’s STRC Preferred Shares Hit Record Low as Bitcoin Dips Under $60,000
MSTR•MicroStrategy’s STRC preferred shares plunged to $73.62, 26.4% below par, as Bitcoin slid under $60,000, testing the company’s capital-raising model. Cash reserves have tumbled 38% year-to-date to $1.4 billion, while annualized dividend obligations on STRC have quadrupled, cutting coverage from seven years to 14 months.
1. Preferred Shares Plunge to Record Low
On June 25, MicroStrategy’s STRC preferred stock hit a record low of $73.62, marking a 26.4% decline from its $100 par value. The drop was triggered by Bitcoin’s slide below $60,000, intensifying concerns over investor appetite for the 11.5% semi-monthly dividend security.
2. Cash Reserves and Dividend Coverage Under Pressure
Documents show MicroStrategy’s USD cash reserve has fallen 38% year-to-date to $1.4 billion, while annualized dividend obligations on STRC have quadrupled. This dynamic has slashed dividend coverage from more than seven years to just 14 months, raising doubts about payout sustainability.
3. Bitcoin Holdings and Financing Flexibility
Despite an aggregate unrealized loss of $10.6 billion on its Bitcoin holdings, the company retains roughly $50 billion in digital assets. Management highlights a diversified funding strategy—including equity, preferred, convertible debt and asset sales—to maintain liquidity without forced Bitcoin sales.
