MicroStrategy’s STRC Preferred Shares at 26% Discount as $1.2B Dividends Rise
MSTR•MicroStrategy’s STRC preferred shares traded around $74, 26% below $100 par value, as dividend obligations hit $1.2B annually and coverage narrowed to 14 months, prompting sale of 32 BTC. Ripple CEO Brad Garlinghouse criticized Michael Saylor’s leveraged Bitcoin financing as a “damning indictment” while remaining bullish on BTC.
1. Preferred Stock Discount and Dividend Pressure
MicroStrategy’s STRC preferred shares have fallen to roughly $74, about 26% below their $100 par value, as annual dividend obligations reached $1.2 billion and the coverage period shrank to 14 months. Concerns over the viability of these payments prompted the sale of 32 BTC in late May, marking the first liquidation from the company’s treasury.
2. Garlinghouse’s Critique and Bullish Bitcoin View
Ripple CEO Brad Garlinghouse labeled the leveraged model underpinning MicroStrategy’s Bitcoin accumulation a “damning indictment,” highlighting risks from excessive financial engineering. Despite his criticism of the financing structure, he maintained a long-term bullish outlook on Bitcoin’s value.
