Dividend Coverage

Strategy’s latest bitcoin sale has intensified scrutiny of its balance-sheet playbook after a turbulent month for BTC and MSTR. The company also disclosed an $8.32 billion second-quarter loss on its bitcoin holdings as market participants debate whether its buying pressure has paused.

Cantor says Strategy’s top priority is returning its STRC preferred stock to $100, a move the bank sees as central to restarting the company’s bitcoin acquisition engine. The firm expects repeated management actions to support dividend coverage, strengthen the balance sheet and potentially benefit MSTR shares.

JPMorgan says Strategy’s new bitcoin sales policy creates “two-way” flow risk and adds avoidable uncertainty to crypto markets. The bank also wants the company to build larger cash reserves to cover dividends.

Strategy says it still has enough U.S. dollar reserves to cover dividend obligations for nearly 10 months, easing immediate concerns about a payout crunch. But weak pricing in MSTR and STRC, along with shifting corporate plans, is testing retail investor trust.

CryptoQuant is warning that Strategy has stretched its balance sheet too far through aggressive bitcoin accumulation. The firm says cash coverage has thinned sharply, making a reset in reserves more urgent than fresh BTC purchases.

Strategy’s bitcoin-backed preferred stock is trading well below its $100 par value, raising fresh questions about dividend coverage and investor demand. At the same time, Strive’s SATA is attracting attention with a higher yield and daily dividend payments.