MicroStrategy's $2.21B Reserve Funds STRC Dividends for 10 Months, Rosen Probe and CryptoQuant Warning
MSTR•Strategy's $2.21 billion cash reserves cover STRC payouts for 10 months, yet sale of 32 BTC to fund dividends has driven preferred shares to $77 and knocked MSTR down 8% on June 25. Rosen probe into bitcoin strategy and CryptoQuant's call to pause BTC buys raise liquidity and dividend concerns.
1. Cash Reserves and Dividend Funding
Strategy reports $2.21 billion cash reserves covering preferred shares' dividend obligations for roughly 10 months. The company sold 32 BTC late May specifically to fund STRC payouts, raising investor concerns over its treasury model.
2. Share Price Movements
STRC shares have fallen to $77, down 23% in June after breaching par value, while common shares declined 8% on June 25 and are down 45% year-to-date as liquidity worries mount.
3. Rosen Law Firm Investigation
Rosen Law Firm has opened an inquiry into whether the company and executives made misleading statements about operations, bitcoin accumulation strategy, profitability and risks tied to its financing structure, potentially leading to a class action lawsuit.
4. CryptoQuant Recommendation
CryptoQuant urges the company to pause new bitcoin purchases, rebuild U.S. dollar cash reserves and become more selective in accumulation, warning that strained liquidity and growing dividend commitments threaten the sustainability of its preferred share funding model.
