MSTR Debt ClockStrategy Inc · debt & preferreds

Data as of
2026-08-23 · Q2 10-Q + weekly 8-K

These bonds can be repaid in shares instead of cash, but only above a set conversion price. Every one of those sits far above the share price, so no lender will take stock. They take cash at face value on a put date years before the loan is officially due. The preferreds have no maturity. They are serviced indefinitely, and that service is now funded by selling common stock.

BTC held840,447avg cost $75,385
Debt notional$6.75B6 convertible issues
Preferred notional$14.97B5 perpetual series
Annual int + div$1.70B98% is preferred divs
USD assets$6.69B3.9 yrs coverage
Stock vs BTC held (mNAV)1.01×MSTR $119.25 · $1.01 of stock per $1 of BTC

When the cash leaves

Puts, not maturities, are the binding dates

Each convertible carries a holder put: a date when investors can demand their money back in full, years before the loan is officially due. With no conversion price within reach of the share price, assume every one of them does. The teal band underneath is the $1.70B/yr dividend-and-interest drain.

Holder put · cash at face value Final maturity · if not put Interest + preferred dividends · $142M/mo = $1.70B/yr

Bars within six months of each other are nudged apart so their amounts stay readable; exact dates are in the tooltip and the table below.

The six live notes

All senior unsecured · none will convert to stock
IssuePrincipalInterestCash/yrHolder putMaturityConverts above

MSTR trades at $119.25. Every "converts above" price is well clear of it, so each note is repaid in cash rather than shares.

The five preferred series

Perpetual: no maturity, only redemption or buyback

The preferreds cost $1.73B/yr against $34.6M of cash interest on the notes. STRC alone carries $1.26B of annual dividends at a 12% rate Strategy resets monthly at its discretion. Seniority runs debt → STRF → STRC → STRE / STRK / STRD → MSTR common.

SeriesRateNotionalDiv/yrPaidCumulativeSince

Timeline

Debt and preferred issuance, 2020–2026

What forces a sale

Ranked by how close it is
Live now

mNAV at 1.01×

The stock is worth barely more than the bitcoin behind it. Below 1.0×, selling new shares to buy BTC destroys value rather than adding it, so the company stops doing it. That share-sale program is what currently pays the dividends; close it and the bill moves to BTC sales.

Live now

BTC under cost basis

$77,004 market vs $75,385 average cost, and below it for most of 2026. Every sale realizes a capital loss against a $4.60B valuation allowance.

Live now

STRC stuck near $96

Policy is not to issue STRC below $100, so the largest preferred share-sale program ($17.5B of capacity) is shut while it trades at a discount.

Policy

12-month reserve floor

The USD Reserve must hold a year of dividends and interest. A breach forces a top-up, and the only sources are share issuance or BTC.

Sep 2027 → Sep 2028

$4.9B of puts

Four put dates in twelve months, every one repaid in full cash. Against $6.69B of USD assets that $1.70B/yr is already draining.

Escape hatch

STRD is non-cumulative

The one dividend that can be skipped without accruing arrears. Missing STRF or STRK four times instead hands preferred holders board seats.