Strategy Faces $13B Bitcoin Loss as STRC Preferred Shares Fall 25%
MSTR•Strategy holds a $13 billion unrealized loss on 847,363 Bitcoin after prices slipped below $60,000, while its STRC preferred shares plunged about 25% from par. The company’s $1.4 billion cash reserve covers barely one year of $1.2 billion annual dividend and debt costs during an ongoing securities investigation.
1. Bitcoin Position and Unrealized Loss
Strategy holds 847,363 Bitcoin at an average acquisition cost near $75,500 per coin. With Bitcoin trading just under $60,000, the digital asset position now reflects roughly $13 billion in unrealized losses, eroding the premium investors once paid for leveraged exposure.
2. STRC Preferred Shares Under Pressure
The dividend-paying STRC preferred stock recently tumbled to levels around $71.25, marking a 25% decline from its $100 par value. This steep drop intensifies scrutiny on the company’s capital structure and raises doubts about the preferred shares’ long-term yield model.
3. Cash Reserves and Dividend Obligations
As of late June, Strategy reported $1.4 billion in cash reserves against approximately $1.2 billion in annual dividend and debt obligations. This cash cushion provides barely one year of coverage, suggesting potential funding needs if volatility persists.
4. Securities Investigation and Legal Risks
A securities investigation initiated by Rosen Law Firm is probing whether executives made materially misleading statements across multiple security issuances. Any escalation into a formal complaint could further pressure the stock and complicate future capital-raising efforts.
