Overview
- Late June market falls pushed STRC to about $71–76, MSTR to the low $80s, and Bitcoin to roughly $58,000, deepening unrealized losses on Strategy’s roughly 844k–847k BTC position bought at about $75k each.
- The preferred squeeze has lifted Strategy’s annual dividend bill to about $1.2 billion while cash reserves sit near $1.4 billion, offering roughly ten months of coverage for preferred payouts.
- Because STRC was engineered to trade near $100, its discount makes issuing new preferreds costly or impractical, which cuts off the capital-raising channel the company used to buy Bitcoin.
- Strategy has slowed net Bitcoin buys, made a rare small BTC sale (32 BTC), routed roughly $300 million of a $335.5 million equity raise into cash, and faces a securities probe from Rosen Law Firm as Michael Saylor posted public remarks about volatility.
- Analysts warn the company must rebuild dollar reserves or sell assets to meet rising cash needs, a choice that risks crystallizing losses, diluting shareholders, or further weakening investor confidence and the preferred-stock mechanism.