Strategy Inc. is carrying a $13 billion unrealized loss on its 847,363-Bitcoin holdings with its STRC preferred shares plunging about 25% from par to record lows near $71. Meanwhile, its $1.4 billion cash reserve covers just over a year of the $1.2 billion annual dividend burden, intensifying capital-structure stress.
Strategy holds 847,363 Bitcoin at an average cost near $75,500, creating a roughly $13 billion unrealized loss as market prices hover around $60,000. Its dividend-paying STRC preferred shares plunged about 25% from par, setting record lows near $71.25 before recovering modestly to $75.30.
The company’s reported $1.4 billion cash reserve is earmarked for dividend payments and debt obligations. At an estimated $1.2 billion in annual STRC dividend costs, this reserve covers just over one year, raising concerns about funding stability if Bitcoin prices remain depressed.
Volatility in STRC has intensified scrutiny on Strategy’s funding model, with analysts urging additional liquidity measures to meet recurring costs. Executive Chairman Michael Saylor noted that “volatility tests every capital structure” while reaffirming commitment to disciplined capital allocation and credit quality.
A securities investigation was launched over potential misleading statements, adding regulatory pressure to the company. The outcome of this probe, combined with sustained Bitcoin weakness, may determine investor confidence and Strategy’s near-term stock performance.
Benzinga
