MicroStrategy STRC Preferred Shares Trade 26% Below Par on $1.2 Bln Dividend Load
MSTR•MicroStrategy’s STRC preferred shares trade at $74, a 26% discount to $100 par, driven by annualized dividends of $1.2 billion and a reduced coverage window from seven years to 14 months. In May, MicroStrategy sold 32 BTC to fund STRC dividend payments.
1. STRC Preferred Stock Discount
MicroStrategy’s STRC perpetual preferred shares have fallen to $74, trading 26% below the $100 par value as investors weigh the company’s mounting financial obligations.
2. Dividend Obligations Surge
Annualized dividend obligations for STRC stock have risen to approximately $1.2 billion, while the dividend coverage window has narrowed from over seven years to just 14 months, intensifying concerns over cash flow sustainability.
3. First Bitcoin Liquidation for Dividends
In late May, MicroStrategy liquidated 32 BTC to fund STRC dividend payments—the first sale of its Bitcoin holdings—to address its growing dividend commitments.
4. Ripple CEO Critiques Leverage Model
Ripple CEO Brad Garlinghouse criticized the borrow-to-buy strategy behind MicroStrategy’s Bitcoin accumulation, calling it a “damning indictment” of financial engineering and highlighting potential long-term value risks compared with asset utility.
