Money Stuff: The Podcast · Thursday, July 2, 2026
MicroStrategy is experiencing financial difficulties due to a significant drop in the value of its Bitcoin holdings and increasing interest expenses on its debt. The company's 'Stretch' preferred stock, designed to maintain a $100 par value, has seen its dividend rate skyrocket to 15%, creating substantial carrying costs.
“Okay, But like simply owning a lot of bitcoin that has gone down is not a problem. The way that it becomes a problem for a company or for anyone is when you have leverage.”
“And now their market clearing interest rate on stretches fifteen percent on billions and billions of dollars, which means that like hundreds of millions of cash cost yeah, that they have to pay from somewhere.”
“So this week they announced the series of measures to fix that, one of which was never mind where you're not going to keep stretch at par. They raise the dividend. It was at eleven point five percent. There is it to twelve percent, which is lot market clear and doesn't to trade a part's trading the eighties. Now they're no longer trying to keep it at par.”