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MSTR struggles to cover obligations, risks Bitcoin sell-off to pay dividends, exposing investors to downside.

Market News
25 Apr 2026
Seeking Alpha
View Source
Bearish
pluang ai news

MSTR's operating business covers less than 30% of its financial obligations, forcing it to rely on issuing equity or selling Bitcoin to pay dividends. This creates a risky cycle where falling Bitcoin prices compel the company to sell more coins to maintain dividend payments. Preferred shareholders bear the full downside risk of Bitcoin price drops without benefiting from potential gains. This situation highlights significant financial instability and risk for investors in MSTR's preferred shares.

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