Strategy Shares Plunge 25% to 52-Week Low; $2.21B Cash Funds 10-Month Dividend
MSTR•Strategy shares fell over 25% this week to a 52-week low after closing down more than 9% on June 26 as investors grew concerned over its leveraged Bitcoin exposure. The company holds $2.21 billion in cash, enough to fund its preferred dividend for 10 months after selling 32 BTC.
1. Stock Plunge to 52-Week Low
Strategy shares slipped over 25% this week, hitting a 52-week low after closing more than 9% lower on June 26. Investors cited concerns about the company’s leveraged position in Bitcoin, extending the stock’s seven-session losing streak.
2. Cash Reserves Support Dividend Obligations
The company reported $2.21 billion in cash reserves, claiming these funds can cover preferred-stock dividend payments for 10 months. Preferred shares yield over 12% and currently trade below par at $77 per share.
3. Bitcoin Sale to Fund Dividends
At the end of May, the company sold 32 BTC for roughly $2 million to help meet dividend obligations, a move that has shaken investor confidence in the firm’s treasury strategy.
4. Ongoing Market and Performance Trends
Strategy’s common stock is down 45% year to date, trading near $86, reflecting broader skepticism about leveraged crypto exposure. Analysts warn that further Bitcoin price volatility could intensify pressure on both common and preferred shares.
