Arkham: TRC's unanchoring stems from dividend expectations, non mandatory liquidation risk

Arkham analysis points out that Strategy's preferred stock STRC is priced at approximately $76.2, a discount of about 25% from its face value of $100. STRC is a perpetual preferred stock with an annualized dividend of approximately 11.5%, issuing approximately 104.89 million shares. The annual dividend cost is approximately $1.2 billion, and Strategy holds approximately $1.4 billion in reserve funds on its books. There is no structural risk of forced liquidation for Strategy and Michael Saylor, and the STRC price reflects the market's expectation of dividend sustainability. STRC dividend payment is not a mandatory obligation, and the company may choose not to maintain dividends. Arkham stated that this mechanism does not threaten the survival of Strategy, but if high dividends rely on continuous financing, it may affect the attractiveness of MicroStrategy's common stock $MSTR for new funding.