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Strategy's dividend runway lost 40 years in seven months
Coverage ratio under pressure from both sides
@Strategy's own numbers are telling an uncomfortable story. In November 2025, the company said its Bitcoin holdings provided enough coverage to fund 71 years of preferred dividend payments. Today, that figure has fallen to just 31 years, a drop of four decades in under seven months.
The compression is coming from two directions at once. The variable rate on STRC, Strategy's perpetual preferred stock known as Stretch, has been held at 11.50% since June 1, 2026, with monthly payouts of $0.9583 per share.As of early May 2026, Strategy had raised $5.58 billion through STRC, a 189% increase year to date. That pile of perpetual, fixed-cost obligations now stands at $10.5 billion, up from $2.8 billion in November. Fund that liability with an asset that has declined sharply, and the math deteriorates quickly.
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