Strategy's perpetual preferred security, STRC, fell to $97.11 before recovering to $98.57, raising concerns about its ability to use the security for efficient capital raising through ATM issuance. The decline occurred alongside bitcoin's drop to $73,000 and STRC's ex-dividend effect. Strategy recently repurchased $1.5 billion of convertible debt, reducing cash reserves from $2.25 billion to $871 million, which now covers only about six months of its annual $1.7 billion preferred dividend obligations. Executive Chairman Michael Saylor outlined capital sources including selling bitcoin, issuing MSTR equity above a 1.22x NAV multiple, or STRC issuance. Meanwhile, competitor Strive Asset Management's perpetual preferred security SATA has remained near $100 par value, supported by a 13% dividend yield and planned daily dividend payments. Strive eliminated all debt from its Semler Scientific acquisition and has seen its stock rise 110% over three months, compared to MSTR's 12% and bitcoin's 8%. The performance gap suggests investors favor Strive's cleaner balance sheet and higher-yielding preferred structure.

Key facts

• STRC fell to $97.11 before closing at $98.57 amid bitcoin decline and ex-dividend effect.
• Strategy's cash reserves dropped to $871 million after $1.5 billion debt repurchase.
• Remaining cash covers only ~6 months of $1.7 billion annual preferred dividend obligations.
• Strive's SATA preferred security trades near $100 par with 13% dividend yield.
• Strive shares gained 110% over 3 months vs. MSTR's 12% and bitcoin's 8%.

KeyAudit data perspective