Strategy’s bitcoin holdings sit on a $13 billion unrealized loss, with its high-yield preferred shares plunging 25% to record lows around $71 and reserves now sufficient to fund dividends for only another ten months. Bitcoin slumped below $60,000 U.S., spurring $4.6 billion in ETF outflows year-to-date and intensifying scrutiny of Strategy’s cash burn.
Strategy’s bitcoin investment has incurred an unrealized loss of roughly $13 billion as the cryptocurrency’s price slid below key levels, marking one of the largest paper losses in its treasury portfolio to date.
The firm's high-yield preferred shares, designed to trade near par, tumbled by about 25% to fresh lows near $71.25, reflecting investor doubts over the sustainability of its twice-monthly dividend as reserves dwindle.
Bitcoin’s slump below $60,000 U.S. triggered substantial outflows from U.S.-listed spot Bitcoin ETFs, totaling $4.6 billion year-to-date, exacerbating downward pressure on both the cryptocurrency and Strategy’s balance sheet.
With reserves now sufficient to fund preferred dividends for approximately ten more months, stakeholders are closely watching Strategy’s cash burn rate and potential need for additional capital to buffer ongoing market volatility.
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