MicroStrategy Secures Cash to Fund Preferred Dividends for 10 Months
MSTR•MicroStrategy holds sufficient cash reserves to cover its twice-monthly preferred stock dividends for the next 10 months. The preferred shares, which yield over 12%, have dropped below their $100 par value and fallen 23% during June.
1. Dividend Funding Runway
MicroStrategy reports having enough cash on hand to continue its twice-monthly preferred stock dividend payouts through the next 10 months, reinforcing its commitment to preferred shareholders despite market volatility.
2. Preferred Stock Performance
The preferred shares, which offer a yield exceeding 12%, have traded below their $100 par value and experienced a 23% decline in June as investor concerns over dividend sustainability intensified.
3. Crypto Market Downturn
Leading cryptocurrencies have slumped over 30% year-to-date, with Bitcoin near two-year lows at $59,900 and total market cap down 30% to $2 trillion. Sustained ETF outflows totaling $4.6 billion may intensify pressure on MicroStrategy's Bitcoin holdings.
