Strategy’s dividend cushion keeps shrinking as Bitcoin slides.

Michael Saylor’s Strategy has seen its projected dividend coverage fall from 71 years to just 31 years in seven months, wiping out roughly four decades of coverage. The decline comes from a combination of lower Bitcoin prices and a sharp increase in dividend obligations tied to the company’s preferred stock offerings.

The company’s preferred shares, particularly STRC, have expanded significantly through new issuance. STRC’s total face value has grown from $2.8 billion to $10.5 billion since November 2025, increasing the amount of cash required for dividend payments each year.

Meanwhile, STRC hit a new all-time low of $82.53, trading well below its intended $100 par value despite offering an annualized dividend rate of 11.5%. The weakness reflects growing investor concerns about Strategy’s ability to sustain its dividend structure during a prolonged Bitcoin downturn.

With Bitccontinuedoin falling from roughly $90,000 to $63,000 since November, the value of Strategy’s BTC reserve has declined significantly, reducing the company’s theoretical dividend runway. At the same time, issuance of preferred shares has increased long-term obligations, putting additional pressure on the balance sheet.

The development highlights the growing strain on Strategy’s leveraged Bitcoin treasury model as $BTC prices and shareholder dilution continue to erode dividend coverage.

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