Bitcoin News
By Dan Saada
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How the Math Fell Apart. Strategy calculates dividend coverage by dividing its bitcoin holdings' market value against…
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STRC Hits an All-Time Low. STRC was supposed to trade near its $100 par value. That was kind of the pitch — a preferred stock…
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The Dilution Problem Gets Worse. Here's the core issue. Strategy keeps issuing preferred shares to raise cash.
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Strategy, Michael Saylor's bitcoin treasury company, just lost 40 years of projected dividend coverage in seven months. That's not a typo.
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Back in November 2025, the company was telling investors it had roughly 71 years of dividend coverage at stable bitcoin prices.
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Bitcoin dropped from around $90,000 to $63,000. That's a big hit to the numerator. And on the denominator side, Strategy kept issuing preferred shares — specifically STRC, its…
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So the coverage ratio didn't just drift lower. It collapsed.
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The stock hit an all-time low, falling to $82.53. That's a 17.5% drop from par. For a security sold largely on the premise of stability, that's a rough place to be.
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Related: Florida Man Bitcoin Rodney Faces 5 Years Over $1.8 Billion HyperFund Collapse
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The 11.5% dividend rate, meant to attract buyers, didn't prevent the slide. It's a variable rate, and the market's clearly pricing in real risk here — not just bitcoin…
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Here's the core issue. Strategy keeps issuing preferred shares to raise cash. That cash goes toward buying bitcoin. Bitcoin is now worth less than what they paid for much of it.
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So the company is in a position where it needs real money to pay dividends on shares it sold to buy an asset that's lost significant value. That's a tough spot.
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Strategy hasn't spelled out exactly how it plans to manage this. No clear roadmap has come out.
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Read also: Andrew Tate Hits $890K in Losses on Hyperliquid as Romania Adds Trafficking Charges
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The STRC face value going from $2.8 billion to $10.5 billion is the number that probably deserves more attention than it's getting.
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