Bitcoin held above $60,000 on Saturday as investors weighed growing concerns about Strategy Inc's (NASDAQ:MSTR)
Bitcoin accumulation strategy ahead of a key dividend adjustment, while the broader cryptocurrency market rallied.
Bitcoin was trading up 1.19% at $60,748.8 at 7:49 PM, holding above the psychologically important $60,000 level. Much of the market's attention remains focused on June 30, when Strategy Inc.'s STRC perpetual preferred shares will trade ex-dividend and undergo a monthly dividend adjustment.
Investors holding shares prior to the ex-dividend date will receive their first semi-monthly dividend payment of $0.48 per share on July 15.
The dividend adjustment is viewed as a more significant event. STRC shares are currently trading around $73, roughly 27% below their $100 par value, bringing the effective yield to approximately 15%. Some investors expect Strategy to raise its dividend from the current 11.5% to better reflect market prices.
STRC's weakness has also reignited discussions about Strategy's capital raising model. Ripple CEO Brad Garlinghouse stated in an interview with CNBC that he remains bullish on Bitcoin, but argued that the company's reliance on issuing preferred shares to fund additional Bitcoin purchases is putting pressure on the broader cryptocurrency market.
Garlinghouse described this approach as financial engineering rather than long-term value creation, pointing to STRC's decline below par value as evidence that investor confidence in the funding model has weakened. He emphasized that his criticism was directed at the funding strategy, not Bitcoin itself.
Strategy has accumulated approximately 844,000 Bitcoin at an average purchase price of approximately $75,600 per coin. With Bitcoin trading around $60,750, the company's unrealized losses remain above $12 billion, according to Bitcoin Treasuries.
The paper losses exceed the combined market capitalization of several well-known cryptocurrencies, including Dogecoin, Cardano, Chainlink, Litecoin, and Bitcoin Cash, highlighting the scale of Strategy's leverage in the world's largest cryptocurrency.
Some analysts have questioned whether the company should temporarily slow its Bitcoin purchases and strengthen its cash position, as lower preferred share prices make it difficult to raise new capital.
Others argue that the funding model remains intact despite its declining efficiency, and that long-term performance will ultimately depend on a recovery in Bitcoin's price, not short-term fluctuations in preferred shares.