MicroStrategy's STRC preferred stock trades at about $74, a 26% discount to its $100 par value, while annual dividend obligations have risen to $1.2 billion, cutting coverage from over seven years to roughly 14 months. The firm sold 32 Bitcoin in May to fund dividends and holds 843,000 BTC.
MicroStrategy's STRC perpetual preferred shares trade near $74, a 26% discount to their $100 par value, reflecting investor concerns over the company's growing debt and financial commitments.
The firm’s annualized dividend obligations for STRC have climbed to approximately $1.2 billion, narrowing the dividend coverage window from over seven years to roughly 14 months and intensifying scrutiny of its financial stability.
In late May, MicroStrategy sold 32 Bitcoin—the first time it has liquidated holdings—to meet its STRC dividend payments, signaling potential liquidity strains in sustaining its aggressive accumulation strategy.
Brad Garlinghouse called MicroStrategy's borrow-to-buy model a 'damning indictment', warning that leveraging heavy debt for Bitcoin acquisition risks market pressure despite the firm’s long-term bullish view. MicroStrategy retains 843,000 BTC, about 76% of all Bitcoin held by public companies.
