Bitcoin dropped below $60,000 U.S. to a two-year low, generating a $13 billion unrealized loss on Strategy’s bitcoin holdings and causing its preferred shares to tumble over 25% from par. The company retains sufficient cash to fund its 12% yielding dividend for another ten months while its common shares fell 4% in the latest session.
Bitcoin plummeted below $60,000 U.S. to its lowest level in two years, marking a year-to-date decline of over 30% and dragging the total cryptocurrency market cap down approximately 30% to near $2 trillion. U.S.-listed spot Bitcoin ETFs experienced net outflows of $4.6 billion so far this year, including the largest daily withdrawals on June 25.
The firm now carries an unrealized bitcoin loss of roughly $13 billion, with its preferred stock plunging more than 25% below its $100 par value during June. Its high-yield preferred shares trade at a yield exceeding 12% and have broken par as investor confidence in digital assets falters.
Despite paper losses, the company maintains sufficient cash reserves to support its twice-monthly dividend for about ten months. Meanwhile, its common stock declined 4% in the latest session as shareholders weigh the sustainability of returns in a volatile crypto environment.
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