Strategy Secures 10-Month Dividend Cash Runway as Bitcoin Falls 30%
MSTR•Strategy has sufficient cash to fund its 12% annualized preferred dividend for another 10 months, after its preferred shares dropped 23% below par in June. Bitcoin slumped to $59,900, its lowest level in two years and down more than 30% year-to-date, eroding value of Strategy’s Bitcoin treasury holdings.
1. Bitcoin Price Plunge and Treasury Impact
Bitcoin price dropped to $59,900, its lowest in two years and down over 30% year-to-date, eroding the value of Strategy’s Bitcoin reserves and pressuring its balance sheet.
2. Preferred Dividend Cash Runway
Strategy has confirmed it holds sufficient cash to fund its twice-monthly dividend, which yields over 12% annually, for the next 10 months, aiming to reassure investors of dividend sustainability.
3. Preferred Shares Trading Below Par
Strategy’s preferred shares, which carried a par value of $100 and yield more than 12%, have fallen 23% in June, trading below par and signaling weakened market confidence.
4. ETF Outflows Weigh on Asset Valuation
U.S.-listed spot Bitcoin ETFs recorded significant daily outflows, pushing year-to-date net withdrawals to $4.6 billion and highlighting weak investor sentiment that could further impact Strategy’s Bitcoin holdings.
