Strategy Shares Plunge 4.8%, Bitcoin Losses and $800M Dividends Strain Liquidity
MSTR•Strategy shares fell 4.8%, on track for a two-year low after a 30% YTD decline, as bitcoin-themed equity and perpetual preferred securities faced heavy retail selling. The company’s 847,363 BTC position, acquired at $75,646 apiece, carries an unrealized $14.5B loss and leaves $900M cash against $800M of dividend obligations.
1. Stock Decline and Preferred Selloff
Strategy’s shares slid 4.8% on Tuesday, marking the lowest close since mid-2024 and a 30% drop year to date. Retail investors have accelerated sales of its perpetual preferred securities, eroding a key funding source and amplifying equity downside risk.
2. Bitcoin Holdings and Unrealized Losses
The firm holds 847,363 BTC at an average cost basis of $75,646 per coin. With Bitcoin trading near $62,000, the position carries an unrealized loss of about $14.5 billion, exposing the balance sheet to significant volatility and potential margin of safety concerns.
3. Dividend Obligations and Liquidity Pressures
Strategy retains $900 million of cash to meet roughly $800 million in annual dividend obligations on its preferred shares. Continued share-price declines could shut off capital from new preferred issuances, forcing the sale of Bitcoin to satisfy fixed dividend payments and preserve solvency.
