Strategy's flagship preferred stock, STRC, fell to an all-time low of $82.53 on Thursday, dragging common shares down with it. The decline is attributed to uncertainty over Strategy's ability to manage fixed obligations, including dividends and debt repayments. CoinShares' James Butterfill noted that the weakness stems from funding concerns rather than Bitcoin's price. Strategy had set aside $2.25 billion in cash reserves at the start of the year, but after repurchasing debt at a discount, the reserve stands at $1.1 billion. The company is expected to pay $100 million in dividends at the end of the month. Analysts consider the dip mechanical, as STRC is designed to trade near its $100 par value; if it lingers below, Strategy can raise dividends to stimulate demand. Benchmark-StoneX's Mark Palmer expects a dividend hike in July to support the price. The downturn deepened after Strategy sold 32 BTC for $2.5 million to cover dividend obligations, raising concerns about future Bitcoin sales. Despite the pressure, analysts view it as a sign of growing pains, not a fatal flaw.

Key facts

• STRC fell to an all-time low of $82.53, recovering slightly to $87.45.
• CoinShares analyst says weakness due to funding uncertainty, not Bitcoin price.
• Strategy sold 32 BTC for $2.5 million to cover dividend payments.
• Analysts expect a dividend hike in July to support STRC price toward par.
• Strategy's common shares fell 32% in the past month, outpacing Bitcoin's decline.

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