Bitcoin (CRYPTO: $BTC) treasury firm Strategy (NASDAQ: $MSTR) says it has enough cash on hand to fund the dividend on its preferred stock for another 10 months.
Strategy says it has 10 months of dollar reserves available to cover the dividend on its preferred stock known as stretch (NASDAQ: $STRC) as it tries to soothe investor concerns.
MSTR stock is down 8% on June 25 as worries grow that Strategy will be unable to meet its dividend obligations.
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STRC stock, which pays a twice monthly dividend that yields more than 12%, has broken its par value of $100 U.S. per share and fallen 23% in June to trade at $77 U.S. a share.
Strategy, led by Chairman Michael Saylor, has been trying to reassure investors that it has the cash needed to continue paying the divided on the preferred stock.
The company says it has total cash reserves of $2.21 billion U.S.
Some analysts note though that Strategy’s main and preferred stocks have each broken down over the past month after the company sold $2 million U.S. in Bitcoin at the end of May.
The sale of 32 BTC was undertaken to help fund the preferred stock’s dividend and has shaken investor confidence in Strategy’s business model, say analysts.
MSTR stock is down 45% this year and trading at $86.34 U.S. per share.