MicroStrategy's perpetual preferred stock trades around $74, 26% below its $100 par value, as annual dividend obligations have climbed to approximately $1.2 billion. Dividend coverage has narrowed from over seven years to 14 months, prompting the sale of 32 BTC in late May to fund payments for the first time.
MicroStrategy's perpetual preferred stock (STRC) trades at roughly $74, 26% below its $100 par value, reflecting investor concerns over the company's rising liabilities.
Annual dividend payments tied to STRC have reached approximately $1.2 billion, while dividend coverage has narrowed from more than seven years to about 14 months.
In late May, MicroStrategy sold 32 BTC to service dividend payments—the first-ever sale—highlighting strain on its capital structure.
Ripple's CEO labeled this borrow-to-buy financing a "damning indictment," arguing that leverage-driven accumulation adds market pressure without creating long-term utility.
