Strategy's Interest Costs Are Set To Rise; MSTR Stock, Bitcoin Rally Fades
Market Intelligence Analysis
AI-PoweredStrategy's interest costs are expected to rise due to an increase in the dividend rate on its preferred stock, potentially impacting MSTR stock and the bitcoin price.
Market impact analysis based on bearish sentiment with 81% confidence.
Article Context
Strategy should have some good news soon for holders of nearly $3 billion in preferred stock — though it's not great for holders of MSTR stock, and maybe not for the bitcoin price. The dividend rate it pays out on its biggest preferred stock issue under the ticker STRC is set to rise to either 10.75% or 11%, up from 9% in August. Strategy is treating preferred stockholders so well to maintain access to capital markets so it can cover obligations and keep on buying bitcoin.
Analysis and insights provided by AnalystMarkets AI.