Strategy Reports $13B Bitcoin Loss, 10-Month Cash Runway for Dividends
MSTR•Strategy holds a $13 billion unrealized loss on its bitcoin portfolio and its STRC preferred shares trade 25% below $100 par. Management says it has cash to fund preferred dividends for another 10 months, even as common shares fell 4% in the latest session.
1. Bitcoin Portfolio and Unrealized Loss
Strategy’s bitcoin holdings have incurred an unrealized loss of $13 billion as market prices remain below its average acquisition cost.
2. Preferred Stock Performance and Dividend Coverage
STRC preferred shares have plunged 25% below their $100 par value, but management confirms it has sufficient cash to sustain the twice-monthly dividend for the next ten months.
3. Common Stock Reaction
Common shares declined 4% in the latest trading session, reflecting investor concerns over the substantial bitcoin losses and the sustainability of preferred dividends.
