MicroStrategy's shares plunged 46% over the last 30 days to a two-year low, while its preferred stock dropped from $100 to $74. Its annual dividend obligations quadrupled to $1.2 billion as Bitcoin slid under $60,000, leaving cash reserves for only 10 months of payments.
MicroStrategy's common stock has fallen 46% over the past 30 days to a two-year low, and its high-yield preferred shares have tumbled from their $100 par value to as low as $74.
The company issued several series of high-dividend preferred stocks to fund Bitcoin purchases, causing annual dividend obligations to quadruple since early 2026 to $1.2 billion, with yields reaching 11.5% on popular issues.
MicroStrategy holds approximately 847,363 BTC at an average cost near $75,000 per coin; with Bitcoin trading below $60,000, unrealized losses are estimated at $14 billion, pressuring its capital structure.
Reported cash reserves stand at roughly $1.4 billion, covering about 10 months of preferred dividends; analysts note rebuilding reserves to around $2.8 billion (24 months coverage) is critical for preferred share recovery, potentially requiring asset sales or new funding.
