MicroStrategy’s Preferred Stock Trades 26% Below Par as BTC Sale Funds Dividends
MSTR•MicroStrategy's STRC perpetual preferred shares trade at a 26% discount to par, changing hands at about $74, as annual dividend obligations of $1.2 billion narrow coverage to 14 months. The company sold 32 Bitcoin in late May to fund STRC payouts, fueling scrutiny of its leveraged accumulation strategy.
1. Preferred Stock Trading at Discount
MicroStrategy’s STRC perpetual preferred stock is trading around $74, roughly 26% below its $100 par value, signaling investor concern over the company’s growing financial obligations and the market’s reception of its leveraged structure.
2. Dividend Obligations and Bitcoin Sale
Annualized dividend payments tied to STRC have climbed to about $1.2 billion, narrowing the dividend coverage window from over seven years to approximately 14 months, and prompting MicroStrategy to sell 32 Bitcoin in late May to service these payouts.
3. CEO Critique Highlights Structural Risks
Ripple’s CEO labeled the borrow-to-buy strategy a “damning indictment,” arguing that heavy leverage introduces market pressure without creating lasting utility for Bitcoin, and raising questions about the long-term viability of MicroStrategy’s capital framework.
