Strategy Faces Twin Financial Strains From Bitcoin Slump and Preferred Dividends

MicroStrategy, now known as Strategy, has raised funds by issuing STRC perpetual preferred stock and used the proceeds to add to its Bitcoin holdings. Investors have relied primarily on dividends and the shares’ $100 par value to underpin confidence. When Bitcoin fell to about $73,000, STRC dropped below $99, raising concerns about whether the company could continue raising capital, paying dividends and maintaining its Bitcoin treasury strategy.

As of July 19, 2026, STRC had extended its decline from below $99 to $75. It had also traded at $88–$89 during the period, while its annualized dividend yield rose to about 11.5%. Strategy’s latest cash reserves were estimated to cover about 10 months of dividends, up from roughly six months previously, but the widening discount showed that retail investor confidence continued to weaken.

Strategy, formerly MicroStrategy, has raised funds by issuing perpetual preferred stock STRC to expand its bitcoin holdings, closely linking the company's securities, leveraged financing and the crypto market. After STRC fell below its $100-per-share benchmark, investors grew concerned that its fundraising capacity and dividend commitments could come under pressure. The preferred stock's price swings have therefore become a key gauge of confidence in Strategy's creditworthiness and bitcoin strategy.

On June 18, STRC fell to its lowest level since issuance, subjecting highly leveraged investors to margin calls and forced liquidations. Strive's CEO stressed that the sharp declines in STRC and SATA stemmed from leveraged liquidations rather than deteriorating credit. The selling subsequently spread to the cryptocurrency market, briefly driving bitcoin down to about $62,000, while DeFi and smart-contract tokens also led losses.

Strategy, formerly known as MicroStrategy, is a key bellwether for corporate crypto treasury strategies, raising funds through common and preferred stock offerings to acquire Bitcoin. STRC is a preferred stock that pays monthly dividends. Changes to its dividend affect investor returns and reflect the company’s financing costs and capital needs amid Bitcoin volatility.

Strategy raised STRC’s annualized dividend rate by 25 basis points to 11.5% in March 2026 and has now kept it at that level for a fourth consecutive month. Meanwhile, Bitcoin fell 20% in February, dragging MSTR down 14% for the month and marking its eighth consecutive monthly decline, underscoring the divergence between preferred-stock yields and the risk profile of the common shares.