MicroStrategy's STRC Plunges 20% to $80 as Dividend Costs Surge
MSTR•MicroStrategy's STRC preferred shares slid to $80, a record 20% discount to $100 par as annual dividend obligations climbed from $300 million to $1.2 billion, cutting runway from over seven years to about 14 months. Its common stock fell below $100 as Bitcoin dipped under $60,000.
1. Record STRC Preferred Discount
STRC preferred shares slid to $80, marking a 20% discount to the $100 par value as MicroStrategy’s annual dividend obligations ballooned from $300 million in January to roughly $1.2 billion, reducing its cash runway from over seven years to about 14 months.
2. Common Stock Pressure
MicroStrategy’s common shares fell below $100 for the first time since March 2024, reflecting intensified selling as Bitcoin dipped under $60,000, exacerbating leverage concerns and making equity-based Bitcoin acquisitions more dilutive.
3. Cash Runway Concerns
With dividend costs outpacing cash reserves, MicroStrategy faces a tightening liquidity trap; options include halting Bitcoin purchases, executing disciplined Bitcoin sales or further issuing equity or preferred shares, each posing potential dilution or heightened dividend burdens.
