MSTR•MSTR•Strategy Inc. holds $2.21 billion in cash reserves, enough to fund its STRC preferred stock dividend for ten months, but sale of 32 BTC in May has driven STRC down 23% in June to $77 per share and pushed common shares 45% lower year-to-date. Rosen Law Firm’s probe into potential misleading statements adds legal uncertainty.
Strategy Inc. has announced total cash reserves of $2.21 billion, representing enough liquidity to cover preferred stock dividends for the next ten months without additional financing. This reserve underpins the company’s commitment to its high-yield STRC instrument, which targets an annual return above 12% through twice-monthly payouts.
In late May, the company sold 32 BTC to generate funds for the preferred dividend, triggering a 23% drop in STRC price to $77 per share in June. The preferred instrument’s discount from its $100 par value and a 45% year-to-date decline in common shares reflect mounting investor concern over the sustainability of the funding model.
Rosen Law Firm has launched an investigation into whether Strategy and certain executives made materially misleading statements regarding its Bitcoin treasury strategy, profitability and associated risks. The probe spans multiple Strategy-linked securities, introducing potential legal liabilities and adding uncertainty to the company’s capital structure.
CryptoQuant analysts recommend pausing new Bitcoin purchases and rebuilding U.S. dollar reserves, warning that the cash buffer supporting dividend commitments has weakened while obligations have grown. They caution that sustaining the aggressive accumulation model may prove increasingly difficult if capital markets remain constrained.
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