K33: Strategy's $725M Preferred Dividend Bill Erodes Bitcoin Treasury Efficiency
STRC sits 40% above its 52-week low of $71.25.
Summary
K33 Research estimates Strategy's perpetual preferred stock (STRC) now carries an annual dividend burden of about $725 million, equivalent to selling roughly 8,740 Bitcoin per year at an $83,000 BTC price. The firm argues that issuing common stock to fund Bitcoin purchases would be more efficient than the 12% dividend rate on the preferred. This follows STRC's climb back to $97.07 from below $75 in late June, driven by aggressive buybacks. The analysis questions whether the preferred funding strategy is diluting the Bitcoin-per-share accretion that Strategy's treasury model relies on.
At the time of this announcement, STRC was trading at $99.80 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $64.2B. The 52-week trading range was $71.25 to $100.42. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Bloomingbit.