MicroStrategy Raises $335.5M Equity, Shifts to Cash as Dividend Obligations Hit $1.2B
MSTR•CryptoQuant urged MicroStrategy to pause Bitcoin purchases and rebuild its US dollar reserve after its annualized dividend obligations surged to $1.2 billion in 2026 and reserves fell 38%, but the call came two weeks after the company had already redirected fresh capital into cash rather than Bitcoin. MicroStrategy reduced weekly BTC buys to 520 coins ($35 million), raised $335.5 million through stock sales and boosted reserves to $1.4 billion, while sitting on a $10.6 billion unrealized loss on its Bitcoin holdings.
1. CryptoQuant’s Warning
CryptoQuant urged MicroStrategy to halt Bitcoin purchases and rebuild its US dollar reserve after annualized dividend obligations nearly quadrupled to $1.2 billion for 2026 and reserves fell by 38%.
2. Preferred Stock Squeeze
The STRC preferred shares plunged to a record low of $82.50, 17.5% below par, cutting dividend coverage from over seven years to about 14 months following a May convertible note buyback.
3. Strategic Cash Pivot
In the week of June 22, MicroStrategy purchased just 520 Bitcoin for approximately $35 million while raising $335.5 million through stock sales, directing $300 million into its reserve and lifting it to $1.4 billion.
4. Bitcoin Holdings Loss
The company’s Bitcoin holdings now carry an unrealized loss of $10.6 billion, as market prices remain well below the average cost basis near $75,000 per coin.
