Strategy's stock tumbled to a four-month low on Friday, with shares hitting $114 before rebounding to $120, still down nearly 7%. Bitcoin fell below $60,000 to $59,227, its lowest since 2024, before recovering slightly.
The company's preferred stock STRC, which offers an 11.5% annual dividend, dropped 3.6% to $93, moving away from its $100 par value. Strategy's sale of 32 Bitcoin for $2.5 million this week marked its first sale since 2022, aimed at managing dividend payments.
Benchmark-StoneX analyst Mark Palmer said STRC's decline "isn't a real concern," noting the product's rate-reset mechanism can adjust dividends to support price. The company's $50.4 billion Bitcoin stockpile is currently $13.7 billion underwater compared to its $63.9 billion cost basis.