Strategy’s flagship preferred stock, STRC, has plummeted to record lows due to the company’s lack of available cash and ballooning costs associated with its flagship preferred stock. According to CryptoQuant Analyst Julio Moreno, the firm needs to focus on shoring up cash reserves to provide 24 months of dividend coverage for Stretch (STRC). The company’s USD Reserve should be rebuilt to alleviate pressure on STRC, which has struggled to trade above $100 since mid-May.
The company’s strategy for accumulating Bitcoin is no longer viable due to the lack of available cash. Ballooning costs have left the firm in a bind, and there’s only one real solution: stop purchasing Bitcoin immediately and focus on shoring up cash reserves. Strategy needs to establish a systematic framework for timing its purchases and selling Bitcoin in a more disciplined way.
The company’s dividend obligations have nearly quadrupled since early 2026, reaching $1.2 billion annualized. This has led to a significant decline in Strategy’s common shares, which tumbled over 10% to a 27-month low of $92.28. The firm’s stock price has dropped by 80% from its multi-year peak of $457.22 last year.
As investors await the company’s next move, analysts warn that Strategy is between a rock and a hard place. If it further paries its holdings to shore up cash for dividend payments, it would solidify unrealized losses on the firm’s balance sheet and destroy shareholder value.
Source: https://decrypt.co/371995/stop-buying-bitcoin-strategy-needs-more-cash-fast-strc-new-low