Strategy's dividend runway lost 40 years in seven months

Coverage ratio under pressure from both sides

@Strategy's own numbers are telling an uncomfortable story. In November 2025, the company said its Bitcoin holdings provided enough coverage to fund 71 years of preferred dividend payments. Today, that figure has fallen to just 31 years, a drop of four decades in under seven months.

The compression is coming from two directions at once. The variable rate on STRC, Strategy's perpetual preferred stock known as Stretch, has been held at 11.50% since June 1, 2026, with monthly payouts of $0.9583 per share. As of early May 2026, Strategy had raised $5.58 billion through STRC, a 189% increase year to date. That pile of perpetual, fixed-cost obligations now stands at $10.5 billion, up from $2.8 billion in November. Fund that liability with an asset that has declined sharply, and the math deteriorates quickly.

Strategy holds 846,843 BTC worth approximately $55.78 billion, making it the largest public corporate Bitcoin holder. The position was acquired for $64.07 billion at an average price of $75,656 per BTC, leaving the company with around $8.29 billion in unrealized losses.

STRC hits a record low as pressure builds

$STRC, which is designed to trade near its $100 stated value, fell to a record low of $82.53. The stock's appeal is closely tied to its ability to remain near par, since maintaining that level is critical to Strategy's capacity to issue shares through its ATM program, generating capital for Bitcoin purchases and other financing needs.

Despite the Bitcoin-backed framing, Strategy's own disclosures state that its preferred securities are not collateralized by the company's Bitcoin holdings and only carry a preferred claim on residual assets. STRC holders have no direct claim on any specific BTC.

The strain is already showing in other ways. Strategy sold Bitcoin for the first time in four years in late May, offloading 32 BTC between May 26 and May 31 at an average of $77,135, totaling $2.5 million, to help fund STRC dividend payments. While the amount was small relative to total holdings, the symbolic significance was notable given that executive chairman Michael Saylor had long championed a never-sell approach to Bitcoin accumulation.

As of mid-June 2026, Strategy maintained a $1.1 billion U.S. dollar reserve to support its obligations. Whether that buffer, combined with continued ATM issuance, proves sufficient will depend heavily on where Bitcoin trades from here.

Sources:
CoinDesk: Strategy sold 32 BTC to fund STRC dividends
Strategy Q1 2026 Earnings 8-K (SEC Filing)
Backpack Exchange: What Is STRC? Strategy's Bitcoin-Linked Preferred Stock Explained