Strategy · Bitcoin · Michael Saylor · CryptoSlate
Saylor’s STRC Bitcoin machine is turning shareholders into its cash backstop, causing a dilution trade-off
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Strategy (formerly known as MicroStrategy) is discovering that strengthening one part of its increasingly complex balance sheet can expose weaknesses elsewhere.
Key facts
- CryptoQuant estimated that Strategy’s annualized preferred-dividend obligations have nearly quadrupled from about $300 million at the start of 2026 to $1.2 billion
- At about $87, a dividend calculated at roughly 11.5% of the $100 stated value gives buyers a market yield of more than 13%
- STRC was launched in July 2025 as a perpetual preferred security designed to trade near $100
- The company sold about 2.7 million MSTR shares last week, raising $335.5 million
Summary
01 Strategy is rebuilding cash after a $1.5 billion debt repayment left STRC dividends under pressure and MSTR dilution rising. 02 The reserve matters because STRC support, Bitcoin buying and shareholder dilution now compete for the same limited capital. 03 Management must still choose between higher payouts, slower Bitcoin purchases, more MSTR sales or even selling Bitcoin to fund dividends. The Bitcoin treasury company spent $1.5 billion in May repurchasing convertible notes, reducing its debt but also draining cash that investors viewed as a backstop for its preferred-stock dividends.