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Strategy · Bitcoin · Michael Saylor ·

STRC was launched in July 2025 as a perpetual preferred security designed to trade near $100

2 min read

Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.

◎ Multiple-sources

Strategy Cash Reserve and Dividend Coverage (Source: CryptoQuant)

The security has since become an important source of funding for Strategy’s Bitcoin purchases.

Key facts

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. Strategy (formerly known as MicroStrategy) is discovering that strengthening one part of its increasingly complex balance sheet can expose weaknesses elsewhere. 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.

#Strategy #Michael Saylor #Bitcoin