Bitcoin Drop Puts MSTR in Tight Spot

A sharp fall of Bitcoin to around $60, 000 has left MicroStrategy’s (MSTR) big Bitcoin stash, worth more than $10 billion in unrealized losses, in a difficult position. The company’s average cost for the coins is close to $75, 700, so a drop in price means huge paper losses. MSTR shares are trading roughly 30 % below their 2025 peak. Three groups now have different demands on the company. Bitcoin holders want CEO Michael Saylor to hold onto the coins and never sell. Equity traders look for leveraged exposure to MSTR’s shares, while preferred‑stock holders of STRC want regular monthly cash. These conflicting interests create what some call a “three‑body problem, ” meaning one group will have to suffer to protect the others. Two Prime CEO Alexander Blume said Saylor may have “flown too close to the sun. ” He warned that the market is growing skeptical of Saylor’s constantly changing plans. If the market stays doubtful, Saylor might have to sell more Bitcoin to pay STRC dividends.The company does not face margin calls on its convertible debt, so the monthly dividend of STRC is crucial. Rajiv Sawhney from Wave Digital Assets said Saylor is in a bind: raising the dividend rate to defend the stock’s value adds $1. 7 billion in annual dividends, but keeping it flat lets the stock price keep falling. Jeff Dorman of Arca estimates that the cash cushion could be gone in less than six months if Bitcoin does not recover. Meanwhile, a contract that would trigger a margin call for MSTR has nearly doubled in value, jumping from 5 % to almost 9 %. Peter Schiff warned that retirees holding STRC could be forced out of retirement if the company’s situation worsens. The next big event is a shareholder vote scheduled for Monday to change STRC’s dividend schedule from monthly to semi‑monthly. If approved, STRC and its sister stock STRK would become the only preferred stocks in the U. S. paying dividends twice a month among more than 920. MSTR’s share price fell sharply in the afternoon, while Bitcoin hovered near $61, 200. STRC trades at about $92. 50 against a par value of $100.