The recent drop in the value of bitcoin has been matched by a decline in the price of Strategy's high-yielding preferred stock STRC. Since reaching its lowest point in February, STRC has fallen 5% in value, reaching $95.00 per share.
This development is significant because STRC is a high-yielding security that pays out a dividend rate of 11.5%. With approximately $15.5 billion worth of STRC outstanding, Strategy needs to pay around $150 million per month in dividends at this rate.
However, with less than $900 million in cash reserves, Strategy has limited room for maneuver if it wants to maintain its dividend payments. Markets are anticipating that the company may need to sell tens of thousands of its bitcoin holdings - currently worth around 843,000 coins - at distressed prices in order to fund these payments.