MicroStrategy's STRC Preferred Hits Record Low at $71.25 as Bitcoin Drops Below $60,000
MSTR•MicroStrategy’s STRC preferred shares plunged to $71.25 at Friday’s open, marking a near 25% drop from its engineered par value as Bitcoin dipped below $60,000. Its $1.4 billion cash reserve now covers barely one year of the $1.2 billion in annual preferred dividend obligations.
1. STRC Preferred Stock Hits Record Low
MicroStrategy’s STRC preferred shares tumbled to $71.25 upon market open, representing a near 25% decline from its engineered $100 par level and extending a multi-session losing streak driven by cryptocurrency volatility.
2. Bitcoin Slide Intensifies Capital Strain
Bitcoin’s recent drop below $60,000 left MicroStrategy holding 847,363 BTC at an average cost near $75,500, while ETF outflows and a looming $10.6 billion options expiry further pressure the firm’s funding model and preferred securities.
3. Saylor Acknowledges Volatility as Cash Runs Thin
Executive Chairman Michael Saylor stated that "volatility tests every capital structure" as the company’s $1.4 billion cash reserve now barely covers a year of $1.2 billion in annual preferred dividend obligations, raising questions about sustaining future payouts.
