MicroStrategy's STRC Preferred Shares Fall Below $100, Raising Bitcoin Sale Concerns

MicroStrategy's permanent preferred stock (STRC) plunged to a record low of $82 before closing near $88, slipping well beneath its $100 par value. The drop has sparked debate among investors about whether the company may need to raise its dividend rate, currently 11.5% annually, to restore the share price, which would increase annual cash obligations and could force the sale of Bitcoin holdings to fund the higher payout.

MicroStrategy holds roughly 84.5 million BTC, valued at about $55 billion, which the firm says can cover its dividend and interest expenses for decades. Nonetheless, the sharp decline in STRC has heightened scrutiny of the firm’s financing model and its long‑term Bitcoin strategy. Analysts are divided: some view the sell‑off as a temporary market dislocation, while others warn of a potential liquidity squeeze that might pressure the company to liquidate Bitcoin. The episode has also drawn comparisons to past crypto crashes, though others dismiss such parallels. Peter Schiff highlighted the structural risk of boosting dividends to lift the share price, noting that lower‑priced investors would receive even higher yields.