MicroStrategy’s Preferred Stock Trades 26% Below Par as BTC Sales Fund Dividends
MSTR•MicroStrategy’s perpetual STRC preferred stock trades roughly 26% below its $100 par value, with annual dividend obligations of $1.2 billion reducing coverage from over seven years to roughly 14 months. In late May the company sold 32 Bitcoin to fund STRC dividend payments, its first BTC liquidation for this purpose.
1. Preferred Stock Discount Widens
MicroStrategy’s STRC perpetual preferred stock has declined to trading roughly 26% below its $100 par value, reflecting investor concerns over the company’s mounting financing obligations. The discount has widened throughout 2026 as market scrutiny intensifies on the capital structure backing its Bitcoin acquisitions.
2. Dividend Obligations Increase Strain
The company’s annualized dividend payments tied to STRC have reached approximately $1.2 billion, narrowing the dividend coverage window from more than seven years to about 14 months. This tightening coverage has triggered questions among investors about the long-term viability of the dividend program under sustained pressure.
3. First Bitcoin Liquidation to Fund Dividends
In late May, MicroStrategy sold 32 Bitcoin to service STRC dividend payments, marking its first liquidation of BTC holdings for this purpose. This move underscored the strain on the firm’s cash flow and highlighted the risks of its leveraged Bitcoin acquisition strategy.
