Strategy Has $2.21 B Cash Runway for STRC Dividends; Rosen Law Probe Opens
MSTR•Strategy holds $2.21 billion cash to fund STRC dividends for ten months after selling 32 BTC in May; STRC shares fell 23% in June to $77 and MSTR common stock is down 45% YTD. Rosen Law opened probe into misleading Bitcoin strategy, while CryptoQuant urges pausing buys to rebuild dollar reserves.
1. Cash Reserve and BTC Sales
Strategy holds $2.21 billion in U.S. dollar reserves, enough to cover preferred stock dividends for ten months following a May sale of 32 BTC to shore up dividend payments. This sale reflects growing pressure on the company’s cash buffer as dividend obligations on STRC expand.
2. Preferred and Common Share Performance
STRC shares have declined 23% in June to trade at $77, falling well below their $100 par value, while common stock is down 45% year-to-date and trading at a discount to the bitcoin it holds. These moves signal waning investor confidence in the dividend model and leverage play.
3. Rosen Law Firm Investigation
A class action probe has been launched to examine whether executives made materially misleading statements about the company’s Bitcoin treasury operations, profitability and dividend sustainability. The investigation covers multiple securities tied to Strategy’s funding structure.
4. CryptoQuant Recommendation
CryptoQuant warns that Strategy should pause new Bitcoin purchases and rebuild U.S. dollar reserves before resuming its systematic accumulation model. The advisory highlights the need for a stronger cash buffer to support ongoing dividend commitments and investor confidence.
