Strategy has defended its ability to keep paying dividends after its STRC preferred stock dropped below $90, the lowest since it launched. The company says its Bitcoin reserves are enough to cover dividend payments for the next 32 years, even as investors and market watchers grow more concerned.
The company’s Bitcoin holdings are now worth almost $55 billion, while it owes about $1.7 billion in dividends. But the recent drop in STRC has pushed its yield up to about 12.9%, leading to questions about how costly it will be to keep paying dividends over time.
STRC was meant to trade near $100 and is a main way for Strategy to fund its Bitcoin buys. When the stock is above its original value, the company can sell more shares and use the money to buy more Bitcoin. Now that STRC is well below $100, this funding method is less useful.
Critics, such as longtime Bitcoin skeptic Peter Schiff, say Strategy might have to sell Bitcoin to meet its obligations if the market gets worse. Some analysts warn that selling Bitcoin could start a negative cycle by putting more pressure on its price.
Despite these worries, Strategy is still adding to its Bitcoin holdings. The company recently bought over 1,500 BTC, showing it remains committed to its long-term plan. Investors are now watching to see if the company can keep paying dividends while buying more Bitcoin.
We have 32 years of dividend coverage through our $BTC Reserve. pic.twitter.com/qTvQYLweul
— Strategy (@Strategy) June 17, 2026
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