Strategy Secures $2.21B Cash to Fund 10-Month Preferred Dividend During Probe
MSTR•Strategy holds $2.21 billion in cash, enough to fund its preferred STRC dividend for ten months after selling 32 BTC to shore up payouts. Rosen Law has launched a class action probe into potential misstatements on Bitcoin strategy, while CryptoQuant warns to pause Bitcoin buys and rebuild reserves.
1. Cash Reserves and Dividend Funding
Strategy holds $2.21 billion in cash reserves, which it says covers the preferred STRC dividend for approximately ten months. The company sold 32 BTC at the end of May to support dividend commitments after STRC shares fell below par.
2. Rosen Law Firm Investigation
Rosen Law Firm has initiated a potential class action probe into possible misleading statements regarding Strategy’s Bitcoin acquisition strategy, profitability, and risk disclosures. The investigation includes multiple security classes, heightening scrutiny on the firm’s disclosures and funding model.
3. CryptoQuant’s Recommendation
CryptoQuant analysts recommend pausing new Bitcoin purchases and rebuilding U.S. dollar reserves to strengthen liquidity coverage for dividend payments. This warning reflects concerns over the shrinking cash buffer as the company’s Bitcoin exposure expands and funding pressures rise.
4. Market Reaction and Valuation Impact
STRC preferred shares have plunged 23% in June to $77 from $100 par, and common shares have lost 45% year-to-date, reflecting growing investor anxiety. With an mNAV of 0.70, the stock now trades below the value of its Bitcoin holdings, signaling a possible valuation squeeze.
