MicroStrategy Sells 32 BTC to Fund $1.2B Dividends as STRC Trades 26% Below Par
MSTR•MicroStrategy’s perpetual preferred stock STRC trades around $74, a 26% discount to its $100 par value, as annualized dividends hit $1.2 billion and coverage narrows to 14 months. The company sold 32 Bitcoin in late May to fund dividend payments, marking its first BTC liquidation.
1. STRC Trading Below Par
MicroStrategy’s STRC perpetual preferred stock trades around $74, representing a 26% discount to its $100 par value. Market pressure has amplified as annualized dividend payments soar to roughly $1.2 billion, narrowing the dividend coverage window from over seven years to just 14 months.
2. First Bitcoin Liquidation to Fund Dividends
In late May, MicroStrategy sold 32 Bitcoin—the first time it liquidated any BTC—to meet STRC dividend obligations. This move highlights growing liquidity strains and signals potential volatility in its bitcoin treasury strategy.
3. Leadership Critique on Leverage Strategy
Ripple’s CEO publicly criticized the borrow-to-buy model underpinning MicroStrategy’s accumulation, questioning its long-term value without utility. Such high-profile scrutiny could weigh on investor sentiment regarding the company’s capital structure.
4. Scale of Bitcoin Holdings
MicroStrategy holds approximately 843,000 Bitcoin, about 76% of all BTC on public company balance sheets. The company’s dominant position underscores broader corporate adoption trends but also concentrates risk in its financing approach.
