MicroStrategy Shares Drop Below $100 as STRC Preferred Trades at 13% Discount
MSTR•MicroStrategy sold 32 Bitcoin from its 847,363-coin treasury, now trading around $61,000 and generating an estimated $10 billion unrealized loss on average cost of $75,699 per coin. Its common shares fell below $100 for the first time since March 2024, while STRC preferred shares trade at a 13% discount, tightening dividend coverage.
1. Bitcoin Selloff and Treasury Impact
MicroStrategy executed its first Bitcoin sale since 2022, offloading 32 BTC from its 847,363-coin treasury. With Bitcoin near $61,000, the company faces roughly $10 billion in unrealized losses versus an average purchase cost of $75,699 per coin.
2. Common Share Price Decline
Shares of MicroStrategy slipped below the $100 level intraday for the first time since March 2024, reflecting heightened sensitivity to Bitcoin’s 50% drop from its October peak. The stock closed the most recent session down about 5%, underlining its leveraged exposure to crypto volatility.
3. STRC Preferred Stock Under Pressure
Strategy’s variable-rate perpetual preferred shares (STRC) now trade at about a 13% discount to their $100 par value, after hitting a record 17.5% discount earlier in the selloff. The effective annual yield on STRC has climbed to roughly 13.17%, increasing the company’s financing costs.
4. Liquidity and Dividend Coverage Concerns
Cash reserves have fallen to $1.4 billion, a 36% decline since early 2026, against annualized dividend commitments of $1.2 billion. Analysts estimate MicroStrategy needs approximately $2.8 billion in reserves to restore 24 months of dividend coverage and stabilize its funding model.
