MicroStrategy Shares Fall 4.8% as Preferred Dividends Strain Liquidity
MSTR•MicroStrategy shares dropped 4.8%, nearing their lowest close in two years as equity and preferred securities weaken. With 847,363 BTC (costing $64.1 billion) and $900 million cash versus $750 million in annual preferred dividends, the company faces increased liquidity risk and potential forced asset sales if Bitcoin falls.
1. Stock Performance Pressure
MicroStrategy shares slid 4.8% on Tuesday, marking over a 30% decline year to date and positioning the stock for its lowest close in more than two years as both equity and preferred securities come under renewed selling pressure.
2. Bitcoin Holdings and Unrealized Losses
The company holds 847,363 Bitcoin acquired at an average cost of $75,646 per coin, with a total cost basis of $64.1 billion, reflecting an unrealized loss given current price levels around $62,000.
3. Liquidity and Dividend Obligations
With cash reserves down to $900 million and annual preferred dividend commitments of $750-800 million, MicroStrategy faces heightened liquidity risk that could force Bitcoin sales if prices decline further or preferred share funding channels close.
