STRC Falls to $74 as $1.2 B Dividend Obligations Quadruple
STRC•Strategy's STRC preferred shares plunged to $74, marking a 46% drawdown over 30 days after bitcoin prices fell to $58,000. Annual dividend obligations have quadrupled to $1.2 billion, while cash reserves cover only ten months, requiring a $2.8 billion rebuild to restore full coverage.
1. Dividend Obligations Surge
Since the start of 2026, Strategy's STRC preferred shares have accrued annual dividend obligations of $1.2 billion, quadrupling previous levels. The Stretch series carries an 11.5% yield, creating fixed cash outflows that grow as bitcoin prices slide.
2. Preferred Share Price Decline
STRC share price slipped from its $100 par value to as low as $74, representing a 26% drop and a 46% drawdown over the last 30 days. The decline reflects investor concerns over the company's ability to service dividends after bitcoin holdings dipped to around $58,000 per coin.
3. Cash Reserves and Coverage Shortfall
The company’s cash reserves currently cover roughly ten months of preferred dividend payments. Executives estimate that rebuilding the cash pile to about $2.8 billion—enough for 24 months of coverage—is essential to restore confidence and support a price rebound.
