MicroStrategy Faces $13B Bitcoin Loss and 25% Drop in STRC Preferred Shares
MSTR•MicroStrategy holds 847,363 bitcoin at an average cost of $75,500, leaving it with a $13 billion unrealized loss that has driven its STRC preferred shares down roughly 25% from par to near $71. Dividend obligations and a $1.4 billion cash reserve now cover barely ten months of payouts.
1. Bitcoin Position and Unrealized Loss
MicroStrategy owns 847,363 bitcoin acquired at an average cost of $75,500 per coin, creating a $13 billion unrealized loss as market prices hover near $60,000.
2. Preferred Stock Plunge
Its STRC preferred shares have tumbled about 25% from par, hitting lows near $71.25 and raising concerns over the firm’s capital structure under volatile bitcoin pricing.
3. Cash Reserves and Dividend Obligations
The company holds roughly $1.4 billion in cash, enough to cover just ten months of dividend payouts on its preferred stock, intensifying scrutiny on cash burn and funding sustainability.
4. Management Response and Legal Pressure
Executive Chairman Michael Saylor reaffirmed commitment to disciplined bitcoin allocation and long-term value creation, even as a securities investigation examines potential misleading statements by company executives.
