Liquidation concerns surrounding Strategy (MSTR) are intensifying as the price of bitcoin continues to decline and the company’s stock has plummeted by nearly 70% from its peak last year. This sharp downturn raises questions about the firm’s capacity to fulfill its financial obligations.
Throughout 2025, Strategy has mainly relied on perpetual preferred stock to finance its bitcoin acquisitions, while utilizing at-the-market (ATM) common share issuance primarily to manage preferred dividend obligations. Under the leadership of Executive Chairman Michael Saylor, the company has introduced four series of U.S.-listed preferred stock this year:
1. Strike (STRK) — featuring an 8% fixed dividend convertible into common stock at a price of $1,000 per share.
2. Strife (STRF) — offering a 10% fixed non-cumulative dividend and holding the most senior position among the preferreds.
3. STRD — also yielding 10%, but on a cumulative basis, ranking junior within the structure.
4. Stretch (STRC) — the latest series that launched in August with a 10.5% fixed cumulative dividend and is currently trading slightly above its opening offer price of $90.
As of November 21, STRK is trading at around $73, equating to an 11.1% yield, reflecting a 10% drop since its issuance. STRD shows the weakest performance at approximately $66, generating a 15.2% yield and suffering a total return loss of 22%. In contrast, STRF remains above its issue price, trading near $94, offering about an 11% gain due to its senior standing.
Market focus has shifted to the critical price point of approximately $74,400 — the threshold at which Strategy would face losses from its bitcoin holdings following more than five years of accumulation. However, a drop below this level does not necessarily imply that the company would confront a margin call or be compelled to liquidate any of its bitcoin assets.
The imminent structural pressure is almost two years away, on September 15, 2027, when holders of the $1 billion 0.625% convertible senior notes will have their first option for a put. Initially priced when MSTR was valued at $130.85, these notes come with a conversion price set at $183.19. With the stock now at roughly $168, it appears unlikely that noteholders would choose to convert and would instead demand cash repayment. This could necessitate Strategy to raise funds or liquidate assets unless the share price recovers significantly before 2027.
Despite the ongoing challenges, Strategy retains several options to meet its annual preferred dividend obligations, even if its market valuation relative to bitcoin holdings diminishes. The company can continue issuing common shares through ATM offerings, sell small portions of its bitcoin treasury, or opt for in-kind dividend payments with newly issued stock.
While there are no immediate risks to preferred dividends, market actions taken to raise capital might inadvertently dampen investor confidence in Strategy, potentially stalling future efforts to acquire more bitcoin. Nonetheless, the firm’s proactive strategies showcase its commitment to navigating these turbulent times, instilling a sense of cautious optimism about its resilience in the cryptocurrency market.