Strategy Inc’s Bitcoin Holdings and Preferred‑Share Dividend Reset
Bitcoin remained above the $60,000 threshold on Saturday, trading at $60,302.7 as of 08:24 ET (12:24 GMT). The price stability coincided with heightened scrutiny of Strategy Inc (NASDAQ:MSTR) and its financing model ahead of the June 30 ex‑dividend date for its STRC perpetual preferred shares.
The STRC shares are expected to trade ex‑dividend on June 30, after which shareholders will receive the first semi‑monthly dividend of $0.48 per share on July 15. The shares are currently priced near $73, representing a 27% discount to the $100 par value and delivering an effective yield of roughly 15%. While the current dividend rate stands at 11.5%, some market participants anticipate that Strategy may raise the rate to better align with the discounted market price.
Ripple’s chief executive, Brad Garlinghouse, expressed criticism of Strategy’s reliance on preferred‑stock issuances to fund additional Bitcoin purchases, describing the approach as financial engineering rather than a sustainable value‑creation strategy. He highlighted the decline of STRC below par as evidence of eroding investor confidence in the funding model, though he clarified that his remarks target the financing mechanism, not Bitcoin itself.
Strategy has amassed approximately 844,000 Bitcoin at an average acquisition cost of about $75,600 per coin. With Bitcoin trading near $60,240, the company’s unrealized paper loss exceeds $13 billion, a figure larger than the total market capitalisation of several well‑known cryptocurrencies such as Dogecoin, Cardano, Chainlink, Litecoin, and Bitcoin Cash.
Analysts are divided on the path forward. Some suggest that Strategy should temporarily curb Bitcoin purchases and bolster its cash position, noting that the depressed preferred‑share price makes fresh capital raises more challenging. Others argue that the financing structure remains viable, asserting that long‑term performance will ultimately hinge on Bitcoin’s price recovery rather than short‑term fluctuations in the preferred‑share market.
Broader Crypto Market Snapshot
During the thin Saturday session, other major cryptocurrencies posted gains: Ether rose 3.02% to $1,584.49, XRP advanced 3.81%, BNB added 1.29%, Solana climbed 4.23%, and Cardano increased 2.87%. Among meme coins, Dogecoin rose 2.76% and TRUMP gained 0.60%.