MicroStrategy Preferred Drops to $80, Dividend Obligations Climb to $1.2B
MSTR•MicroStrategy’s STRC preferred plunged to roughly $80, a record discount to $100 par, while common shares fell below $100 as Bitcoin slid under $60,000. Annual dividend obligations increased from $300 million to $1.2 billion, cutting coverage from seven years to 14 months and spurring calls to pause Bitcoin purchases.
1. Preferred Stock and Common Stock Performance
MicroStrategy’s STRC preferred stock fell to about $80, marking a 20% discount to its $100 par value, while common shares slipped below $100 for the first time since March 2024. The equity decline has been driven by Bitcoin’s drop under $60,000, amplifying leveraged exposure concerns.
2. Rising Dividend Obligations and Cash Runway
Annual dividend commitments on STRC have jumped from roughly $300 million at the start of 2026 to $1.2 billion today, shrinking preferred dividend coverage from over seven years to approximately 14 months. The tightened runway heightens pressure on the firm’s liquidity and balance sheet resilience.
3. Analyst Recommendations and Strategic Options
Analysts recommend pausing further Bitcoin acquisitions to conserve cash and prevent deeper dilution of dividend coverage. They advise rebuilding reserves to cover at least two years of obligations before resuming asset accumulation to restore investor confidence.
