Liquidation calls from the sidelines are growing louder for Strategy ( MSTR ) as bitcoin falls and the company’s common stock has fallen nearly 70% from last year’s peak, calling into question — for some — the firm’s ability to continue meeting its obligations.
Throughout 2025, Strategy has relied on perpetual preferred stock as its primary funding vehicle for bitcoin purchases, while mostly using common stock issuance in the market (ATM) primarily to cover its preferred dividend obligations.
Led by Chairman Michael Saylor, the company issued four US-listed preferred series during the year: Strike ( STRK ) pays a fixed dividend of 8% and is convertible into common stock at $1,000 per share; stock. Strife (STRF) has a fixed non-cumulative dividend of 10% and ranks as the highest of the preferreds. also pays 10% but on cumulative terms and sits junior in the structure. Stretch (STRC), the newest series, debuted in August at $90 with a fixed cumulative yield of 10.5% and is now trading just above the offering price.
Per On November 21, STRK traded near $73, a current return of 11.1%, down 10% since issuance. STRD has been the weakest performer, falling to around $66 for a return of 15.2% and a total return loss of 22%. STRF is the only series still above the issue, trading around $94 and delivering a gain of around 11%, reflecting its senior status.
Almost back to break even
Bitcoin’s plunge in recent weeks has market participants focusing on the roughly $74,400 level where Strategy — after more than five years of accumulation — would actually be in the red on its bitcoin holdings.
While certainly an important level for talking points, a drop below $74,400 certainly does not mean the company will face a margin call or have to engage in forced selling of any part of its BTC stack.
The nearest structural pressure point is almost two years out on September 15, 2027, when holders of $1 billion 0.625% convertible senior notes receive their first put option.
The notes were priced when MSTR traded at $130.85 and have a conversion price of $183.19. With the stock now at around $168, holders are unlikely to convert and will likely seek cash repayment, potentially requiring Strategy to raise or liquidate assets unless the stock price rises meaningfully before 2027.
There are several handles left
Even if the MSTR equity valuation premium to bitcoin holdings (mNAV) collapses further and may even go to a discount, the Strategy still has a clear path to cover the annual preferred dividend bill.
The company can continue to issue common stock via ATM offerings, or sell small pieces of its bitcoin tax, or even pay dividends in kind with newly issued shares.
That doesn’t mean all is well. While preferred dividends are not at immediate risk, using any of the above options will certainly lower investor confidence in the strategy further, likely putting an end to — at least temporarily — any effort to raise additional capital for more bitcoin purchases.
