Strategy’s Preferred Shares Fall 20% to $79.85 as Cash Slides to $1.4B
MSTR•Strategy's variable-rate preferred shares fell to a record low of $79.85, trading roughly 20% below $100 par and pushing effective yield to over 13%. Cash reserves have slumped to $1.4 billion—about half the roughly $2.8 billion needed for 24-month dividend coverage—prompting calls to pause Bitcoin purchases.
1. Preferred Shares Slide to Record Low
Strategy’s variable-rate perpetual preferred stock dropped to $79.85, representing a roughly 20% discount to its $100 par value and driving the effective annual yield above 13% as market confidence wavers.
2. Cash Reserves and Dividend Coverage Gap
Cash balances have fallen to $1.4 billion from earlier levels, leaving only 14 months of dividend coverage compared with the 24 months deemed prudent, down from over seven years at the start of 2026.
3. Calls to Pause Bitcoin Buying
Analysts recommend halting further Bitcoin acquisitions to rebuild the cash buffer, suggesting a systematic purchase framework and disciplined selling strategy to restore confidence in the preferred stock and stabilize funding.
