Strategy holds $2.21B cash to fund preferred dividends for 10 months after selling 32 BTC for $2M, as STRC shares yield 12% plunge 23% to $77 and common shares decline 45% YTD. Rosen investigation and CryptoQuant's call to pause BTC buys underscore funding risks in MicroStrategy's acquisition model.
Strategy reports $2.21 billion in cash reserves, enough to cover preferred dividends for the next 10 months. The company sold 32 BTC for $2 million at the end of May to supplement its dividend payments.
STRC perpetual preferred shares, designed to trade at $100 par, have fallen 23% this month to $77, reflecting a 12% annual yield. Common shares have slumped 45% year-to-date as investors question the sustainability of the funding structure.
A class action probe has been launched into potential misleading statements about the company’s Bitcoin treasury strategy, profitability, and capital structure. The investigation covers all share classes, including common and preferred securities.
CryptoQuant warns that current cash buffers are eroding and urges a pause in new Bitcoin acquisitions until U.S. dollar reserves are rebuilt. The firm highlights the need for stronger dividend coverage to maintain investor confidence in the funding model.
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