MicroStrategy’s STRC Stock Trades at $74, 26% Below Par on Rising Dividends
MSTR•Brad Garlinghouse criticized Michael Saylor’s leveraged model as a “damning indictment” while MicroStrategy’s STRC preferred stock trades at $74, a 26% discount to its $100 par value. Dividends swelled to $1.2 billion, coverage windows shrank from seven years to 14 months, and MicroStrategy sold 32 BTC in May to fund payouts.
1. CEO Critique of Leverage Strategy
Brad Garlinghouse called Saylor’s leveraged accumulation model a “damning indictment,” distinguishing between Bitcoin’s inherent value and the added risks of financing structures built around it.
2. STRC Preferred Stock Under Pressure
MicroStrategy’s STRC preferred shares trade around $74, roughly 26% below the $100 par value, as annual dividends have ballooned to $1.2 billion and coverage windows compressed from over seven years to about 14 months.
3. Bitcoin Liquidation to Fund Dividends
In late May, MicroStrategy sold 32 BTC to cover dividend payments—the first time it liquidated any Bitcoin for financial obligations—intensifying investor concerns over its capital structure.
4. Utility vs Financial Engineering Debate
Garlinghouse argued that long-term digital asset value is driven by utility rather than leverage, citing Ripple’s cross-border payment infrastructure as a more sustainable model than borrow-to-buy strategies.
