MicroStrategy’s $13B Bitcoin Loss as STRC Preferred Stock Drops 25%
MSTR•MicroStrategy holds 847,363 BTC at an average cost near $75,500 per coin, resulting in roughly $13B unrealized loss as prices linger below $60,000. Its STRC preferred shares have fallen about 25% from the $100 par level, with only ten months of cash reserves to cover $1.2B in annual dividend obligations.
1. Unrealized Bitcoin Loss
MicroStrategy’s current Bitcoin holdings total 847,363 BTC, acquired at an average cost near $75,500 per coin. With Bitcoin trading under $60,000, the company is carrying an unrealized loss of approximately $13 billion on its balance sheet.
2. Preferred Stock Decline
The STRC preferred shares, engineered to trade at $100, plunged to lows near $71.25 before recovering to about $75.30. This nearly 25% drop has intensified scrutiny on the firm’s capital structure and dividend model.
3. Cash Reserves and Dividend Obligations
As of June 22, MicroStrategy reported $1.4 billion in cash reserves, sufficient to cover only ten months of its $1.2 billion annual dividend obligations on preferred stock. Any further cash burn could pressure the firm to liquidate assets or seek additional funding.
4. Strategic Implications
Sustained Bitcoin weakness and preferred stock volatility test investor confidence in Michael Saylor’s strategy. The company may face tougher choices on capital allocation, potential asset sales and reinforced credibility challenges if dividend commitments strain liquidity.
