MicroStrategy Faces $13B Bitcoin Loss, Preferred Stock Down 25%
MSTR•MicroStrategy holds a $13B unrealized loss on its Bitcoin holdings as cryptocurrency prices fall, with its STRC preferred stock down 25% from par and cash reserves covering about 10 months of its 12% twice-monthly dividend. Its common shares fell 4% in the most recent trading session.
1. Bitcoin Losses Impact
MicroStrategy has recorded a $13B unrealized loss on its Bitcoin holdings due to more than a 30% year-to-date drop in the cryptocurrency’s price, widening the gap between its acquisition cost and current market value.
2. Dividend Reserve and Preferred Stock
The firm holds reserves sufficient to cover its preferred stock’s twice-monthly dividend—yielding over 12%—for roughly ten months, yet the preferred shares have fallen about 25% below their $100 par value this month.
3. Common Share Performance
Its common shares tumbled 4% in the latest session as investors weighed the mounting digital-asset losses against the company’s cash strategy, raising questions about its ability to sustain shareholder returns if Bitcoin fails to rebound.
