MicroStrategy's Preferred Shares Crash as Bitcoin Holdings Sink $12 B

MicroStrategy’s variable‑rate preferred share STRC fell below $80 for the first time this week, trading as low as $73.62 and representing roughly a 25% discount to its $100 par value. The decline mirrors a broader slide in the company’s preferred series, with STRD and other units also losing value.

The firm’s Bitcoin portfolio, acquired at an average cost of $75,651 per coin, now faces an unrealized loss of about $12 billion. Holding 847,363 BTC valued near $60,000 each, the treasury’s worth is roughly $52 billion, far below the $64 billion purchase cost. With cash reserves of about $1.4 billion, MicroStrategy can cover less than a year of the preferred‑stock dividend obligations, which total $1.2‑$1.7 billion annually.

To shore up liquidity, the company may need to raise capital through additional equity issuance, debt, or a sale of Bitcoin—each option carrying significant dilution or strategic drawbacks. Meanwhile, common stock (MSTR) has slipped below $100 for the first time in two years, intensifying pressure on the firm’s financing model.