MicroStrategy Secures 12% Dividend Funding for 10 Months as Bitcoin Slides Below $60,000
MSTR•MicroStrategy said its cash reserves can fund its preferred stock’s 12%-plus dividend for 10 months after shares dropped 23% in June. Bitcoin slipped below $60,000, down over 30% YTD, as U.S. spot BTC ETFs recorded $4.6 billion net outflows, intensifying downside risk for its bitcoin holdings.
1. Dividend Funding Plan
MicroStrategy said its treasury reserves of cash and liquid assets are sufficient to cover the twice-monthly preferred stock dividend, which yields over 12%, through the next 10 months, intending to reassure investors about payout sustainability.
2. Preferred Stock Performance
Shares of MicroStrategy’s preferred stock have fallen 23% in June, breaking below par value of $100 per share as investors worry about the firm’s ability to maintain its high-yield dividend.
3. Crypto Market Headwinds
Bitcoin has declined more than 30% year-to-date, trading near $60,000, and U.S. spot Bitcoin ETFs have recorded $4.6 billion in net outflows, exerting pressure on MicroStrategy’s bitcoin treasury and contributing to market uncertainty.
