Michael Saylor’s bitcoin (BTC) treasury company Strategy has lost 40 years of forecasted dividend coverage in just seven months.
On November 20, the company announced, “At current BTC levels, we have 71 years of dividend coverage assuming the price stays flat.”
However, on Thursday morning, it admitted, “We have 32 years of dividend coverage through our BTC Reserve.” A few hours later, the counter on its homepage ticked down to 31.
Things aren’t going well for Strategy. As of writing time, the company’s common stock, MSTR, is within 7% of its 52-week low and its largest dividend-paying stock, STRC, hit an all-time low today.
Strategy loses four decades of dividend coverage
Strategy calculates Dividend Coverage using elementary division, dividing the market value of its BTC holdings by its forecasted year of dividend payments.
Obviously, the lower the price of BTC, the fewer years Strategy can pay dividends by hypothetically selling its BTC.
Moreover, years decrease even with a flat BTC price as Strategy increases its annual dividend obligations by issuing more dividend-paying shares.
This second cause, also known as dilution, is the primary reason for Strategy’s shortened runway.
Indeed, the company has aggressively diluted shares of its preferred stocks, especially STRC. On November 20, 2025, the total face value of STRC was $2.8 billion. Today, it’s $10.5 billion.
All of those extra preferred shares pay dividends.
Read more: Saylor distances himself from STRC-backed DeFi after stablecoin wobble
STRC hit an all-time low today
STRC, according to dubious claims about its stability and comparisons to savings accounts or money markets, pays a variable 11.5% annualized dividend rate and is supposed to trade near its $100 par value.
In fact, it trades at wildly lower prices than that Saylor’s intention. Today, for example, STRC fell to an all-time low of $82.53, 17.5% below its intended price.
As the price of BTC dropped from about $90,000 in mid-November to roughly $63,000, a decline of 30%, smaller numerator reduced Strategy’s dividend coverage.
Over the same time period, Strategy ran up its dividend bill. Annual preferred obligations have increased by hundreds of millions of dollars, and they all require USD cash.
Over the last seven months, the company kept diluting preferred shareholders, manufacturing more obligations that never end, in order to fund one-time purchases of BTC that are almost entirely underwater as the BTC bear market has continued lower.
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