Strategy holds $2.21 billion in cash reserves, enough to cover its preferred dividend for 10 months after selling 32 BTC to fund payments, while its common shares plunged below $100 support and are down 45% YTD. A class-action probe and calls to pause Bitcoin buys intensify scrutiny of its funding model.
Strategy reports $2.21 billion in U.S. dollar reserves, enabling it to fund the twice-monthly preferred dividend for approximately 10 months. The company sold 32 BTC in late May to shore up that dividend, yet its preferred shares have fallen 23% in June to about $77 and common shares slid below $100 support.
Rosen Law Firm has launched a potential class-action investigation into whether Strategy and executives made misleading statements on its Bitcoin treasury strategy, profitability and risk profile. The probe spans multiple securities, including common and preferred shares, raising questions about disclosure and long-term funding assumptions.
Market watchers recommend pausing new Bitcoin purchases and rebuilding cash buffers after preferred shares dropped well below par, reflecting tightened dividend coverage that could require roughly $1.2 billion annually. With MSTR trading under its NAV and Bitcoin exposure mounting, the sustainability of issuing new equity or preferred stock faces heightened doubt.
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