MicroStrategy’s STRC Preferred Slides 20% Below Par to $79.85
MSTR•MicroStrategy’s STRC preferred shares fell to a record low of $79.85, a 20% discount to par, as dividend coverage collapsed from over seven years to 14 months. Analysts say it must halt Bitcoin buying and boost cash reserves to about $2.8 billion for 24 months of dividend coverage.
1. STRC Preferred Slides to Record Low
MicroStrategy’s STRC preferred shares declined to $79.85, marking a record low and trading at roughly a 20% discount to their $100 par value as investor confidence waned.
2. Dividend Coverage Collapse
STRC’s annual dividend obligations rose to about $1.2 billion, causing dividend coverage to shrink from over seven years at the start of 2026 to just 14 months today.
3. Recommendation to Pause Bitcoin Purchases
Analysts led by Julio Moreno argue the company should suspend further Bitcoin purchases to conserve cash and stabilize STRC’s funding model.
4. Cash Reserve Goals and Funding Gap
Current cash reserves stand near $1.4 billion, down 36% this year, while a target of roughly $2.8 billion is needed to cover two years of dividend obligations.
