Strategy has a 10-month cash runway for dividends, but retail investors are losing faith
STRC was marketed as a low volatility income product designed to trade near $100, and its sharp decline has undermined investor trust.
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Summary
- Strategy still has the U.S. dollar reserves to comfortably meet its dividend obligations for almost 10 months. The current price doesn’t put those payments at risk.
- MSTR fell 8% to $86 on Thursday, its lowest level since February 2024, while STRC dropped to $75, trading at a 25% discount to its intended $100 par value.
- CEO of Two Prime, Alexander Blume, said repeated changes in Strategy’s plans, combined with the weak performance of MSTR and STRC, have undermined trust among retail investors.
