Strategy Cash Reserves Seen Stretched on Lower Bitcoin Prices

Dow Jones06-24

1147 ET - Shares of Strategy's perpetual preferred stock STRC - which stands for "Short Duration High Yield Credit" - are off from their $100 peg, at $83.84. Behind this slide is the lower bitcoin prices, with Strategy currently sitting on an unrealized loss of nearly $11 billion. STRC fell as low as $82.53 last week, which is a record-low for the offering. "The main issue is cash coverage," says analysts with CryptoQuant in a note. "Strategy's USD reserve has fallen 38% since the start of 2026, while annualized dividend obligations have nearly quadrupled to $1.2 billion." The cryptocurrency market fears a scenario where Strategy dumps a sizable portion of their bitcoin holdings, as the company says that it holds 847,363 bitcoin -- roughly 4% of all bitcoin in circulation. (kirk.maltais@wsj.com)

(END) Dow Jones Newswires

June 24, 2026 11:47 ET (15:47 GMT)

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