Strategy has a 10-month cash runway for dividends, but retail investors are losing faith
CoinDesk 2026-06-25 15:45:43
Context: Strategy, a company led by Michael Saylor, has seen its stock and preferred shares plummet, eroding investor trust. The company's perpetual preferred stock, STRC, was marketed as a low-volatility income product designed to trade near $100 but has sharply declined to $75, a 25% discount to its intended value. This has raised concerns about the company's credibility and ability to meet its dividend obligations, despite having a 10-month cash runway.
Key Facts
- Strategy still has the U.S. dollar reserves to comfortably meet its dividend obligations for almost 10 months, with its current price not putting those payments at risk.
- STRC, the perpetual preferred stock, has continued its collapse to $75, a 25% discount to its peg, while MSTR, the company's stock, fell 8% to $86 on Thursday, its lowest level since February 2024.
- Michael Saylor's repeated changes in plans, combined with the weak performance of MSTR and STRC, have undermined trust among retail investors, according to Alexander Blume, CEO of Two Prime.
- The company's enterprise multiple to net asset value (mNAV) now sits at just 1.05, as it continues to compress from the high-flying premium that long underpinned the company's bull thesis.
- STRC trading well below its $100 target level simply makes Strategy's bitcoin acquisition and funding engine less efficient, because the company can no longer issue the preferred shares on attractive terms, as Benchmark analyst Mark Palmer previously noted.