Key Insights:
- The STRC stock dividend obligations have surged from $300 million to $1.2 billion this year.
- Concerns around STRC intensified after the preferred shares fell as low as $82, an 18% discount to their $100 par value.
- Supporters remain positive as company CEO Phong Lee purchased $1 million worth of STRC shares.
With Strategy’s STRC stock price trading at a 12.5% discount to its $100 par value, analysts have raised concerns. Experts believe that Michael Saylor’s firm needs to stop with further Bitcoin accumulation. They expect him to focus more on increasing its USD reserves.
Experts have raised concerns due to the increasing STRC dividend obligations and the declining stock price.
Strategy Should Stop Bitcoin Accumulation and Focus on STRC Stock Dividends
Julio Moreno is the Head of Research at blockchain analytics firm CryptoQuant. He has suggested that Strategy (NASDAQ: MSTR) should temporarily halt its Bitcoin accumulation strategy.
Moreno said that instead, the company should focus on building USD cash reserves to meet dividend obligations to STRC stockholders. That’s because the dividend obligations continue to rise.
According to him, Strategy’s annualized dividend commitments are tied to its STRC preferred stock. They have surged from $300 million at the start of 2026 to now $1.2 billion. During the same period, the company’s cash reserves have reportedly declined by 38%.
As a result, Strategy’s dividend coverage ratio has tanked from more than seven years to roughly 14 months. The analyst argued that Strategy should prioritize strengthening its liquidity position before resuming large-scale Bitcoin purchases.
Earlier this week, Strategy announced the purchase of 520 Bitcoin while selling $335 million in MSTR shares. Although this is a strong vote of confidence in Bitcoin, investors expressed concerns about diluting MSTR holdings.
Moreno suggested that Strategy could consider selling a portion of its Bitcoin holdings during future bull market cycles.
According to him, realizing gains during periods of market strength could help reduce leverage. It will also help boost the cash reserves and improve the company’s long-term financial flexibility.
STRC Stock Price Crash and Immediate Concerns
The STRC stock price crashed all the way to $82, a massive 18% discount to its $100 par value. Many claimed that the steep fall was due to the liquidation of a leveraged position.
However, CryptoQuant’s Moreno noted that the fall in STRC stock price is largely due to the deteriorating fundamentals of Strategy. He said that “STRC’s dividend cash coverage fell to its lowest level on record,” which remains a major concern.
The STRC stock has recovered partially from the bottom. However, it is still trading at over 10% discount from its par value. Speaking on this development, Bitcoin critic Peter Schiff wrote:
Popular analyst Ted Pillows noted that Michael Saylor has continued to dilute MSTR shareholders. Despite his efforts, the STRC stock has shown no signs of recovery, which is concerning.
Vote of Confidence In Strategy’s STRC
To address all the investor concerns, Strategy CEO Phong Lee announced a $1 million purchase of STRC stock earlier this week. He said that he would hold the shares until the price reaches $100 par value or even longer.
JAN3 chief executive Samson Mow stated that STRC stock contains a built-in “self-repairing mechanism.” This helps support the security when it trades below its $100 par value.
According to Mow, a decline in STRC’s market price automatically increases its effective yield. It creates a potential capital appreciation opportunity if the stock eventually returns to par value. These dynamics, he argued, incentivize investors to buy the preferred shares.
Mow noted that STRC’s discount to par value does not affect the company’s ability to continue paying dividends. He said that the stock price movement is as intended despite the market volatility.
Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draws his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fiction novels and sometimes explores his culinary skills.
