MicroStrategy Cash Reserve Down 38% as Dividend Obligations Quadruple to $1.2 B
MSTR•MicroStrategy’s annual dividend obligations have surged to $1.2 billion for 2026 while its US dollar reserve has plunged 38%, cutting preferred coverage from over seven years to roughly 14 months. Over the week of June 22, MicroStrategy bought just 520 BTC (~$35 million) and directed $300 million of a $335.5 million stock raise into its cash reserve.
1. CryptoQuant’s Warning
CryptoQuant highlighted that MicroStrategy’s annualized dividend obligations have nearly quadrupled to $1.2 billion in 2026, while its US dollar reserve fell 38% this year. This deterioration cut coverage of its variable-rate preferred stock dividends (STRC) from over seven years to about 14 months as STRC slid to a record low of $82.50.
2. Pivot to Cash Reserve Rebuild
Before the warning, MicroStrategy began shifting fresh capital away from Bitcoin purchases: in the week of June 22 it acquired just 520 BTC (~$35 million). During that same period, the company raised $335.5 million via a common stock offering and allocated $300 million into its US dollar reserve, lifting it to $1.4 billion.
3. Implications for Dividend Funding and Strategy
With preferred dividends fixed irrespective of Bitcoin’s price, a depleted cash reserve heightens the risk of forced asset sales. Continued underfunding could strain MicroStrategy’s ability to meet its $800 million annual preferred dividend obligation and constrain future Bitcoin acquisition strategy.
