MicroStrategy shares fell 8% on June 25 as investors expressed concerns regarding the company's ability to maintain dividend payments on its preferred stock amid declining market performance.
Key Points
- MicroStrategy’s preferred stock (STRC) dropped 23% in June, falling below its $100 par value to trade at $77 per share.
- The company maintains $2.21 billion in cash reserves and claims it has sufficient funds to cover preferred dividends for the next 10 months.
- Investor confidence declined after MicroStrategy sold 32 Bitcoin for $2 million in late May to help finance dividend obligations.
- MicroStrategy’s primary stock (MSTR) has declined 45% year-to-date, closing recently at $86.34 per share.