MicroStrategy’s common shares plunged 46% over the past 30 days to a two-year low, while its preferred stock dipped to $74 from $100. Meanwhile, dividend obligations on its preferred issues have quadrupled this year to $1.2 billion, worsening cash constraints as Bitcoin tumbled below $60,000.
MicroStrategy holds 847,363 BTC, currently worth about $50.7 billion at $58,000 per coin, resulting in roughly $14 billion in unrealized losses as cryptocurrency prices slid well below the company’s average cost of $75,000.
The company’s preferred share dividend obligations have quadrupled to $1.2 billion annually, with its most popular series offering an 11.5% yield, creating mounting cash flow pressure as payouts accelerate.
Common shares dropped 46% over the past month to a two-year low, while preferred issues slipped to $74 from $100, reflecting investor concern over funding costs for continued bitcoin accumulation.
On-hand cash covers roughly 10 months of preferred dividends, below the $2.8 billion needed for two years of coverage; rebuilding reserves is viewed as essential to restore confidence and support preferred share recovery.
Finance
