Strategy’s STRC Preferred Drops to $80 as Bitcoin Slips Below $60K
MSTR•Strategy’s preferred stock (STRC) slid to a record low near $80 while common shares dipped below $100 for the first time since March 2024 as Bitcoin tumbled under $60,000. Annual STRC dividend obligations have ballooned from $300 million to about $1.2 billion, shrinking cash runway from over seven years to roughly 14 months.
1. Triple-Lever Structure Under Strain
Strategy’s three-part model—Bitcoin reserves, MSTR common stock and STRC preferred stock—has weakened simultaneously as Bitcoin falls under $60,000, MSTR slips below $100 and STRC trades at a steep discount to its $100 par.
2. Ballooning Dividend Obligations
STRC’s annual dividend bill surged from about $300 million in January to roughly $1.2 billion today, driven by an 11.5% cash yield and growing outstanding preferred shares, cutting cash coverage from seven years to just 14 months.
3. Call to Halt Bitcoin Purchases
Analysts recommend pausing further Bitcoin acquisitions and diverting resources to cash accumulation after a small sale of 32 BTC for $2.5 million failed to reassure investors as STRC hit $79.85 and confidence in digital credit waned.
