Strategy Holds $2.21 B Cash While Shares Drop Below $100 on Dividend Worries
MSTR•Strategy holds $2.21 billion in cash, covering preferred stock dividends for roughly 10 months after selling 32 BTC for $2 million. Its shares have fallen through $100, down 45% year-to-date, triggering a class-action probe and warnings to pause Bitcoin purchases and rebuild reserves.
1. Cash Runway and Dividend Funding
Strategy reports $2.21 billion in cash reserves, sufficient to fund its high-yield preferred stock dividend for about 10 months. The company sold 32 BTC for $2 million at the end of May specifically to bolster dividend payments after preferred shares broke below par.
2. Stock Performance and Market Reaction
The common shares plunged through the $100 support level, trading down roughly 45% year-to-date and marking the worst seven-day stretch since November 2022. Preferred shares have fallen 23% in June to around $77, reflecting investor concern over dividend sustainability.
3. Legal Probe and Analytical Warnings
A class-action investigation examines whether Strategy made misleading statements about its Bitcoin accumulation model and financial risks. Analysts from CryptoQuant recommend pausing new Bitcoin purchases and prioritizing cash reserve rebuilds to stabilize dividend coverage and investor confidence.
