Saylor Claims STRF Asset Coverage Maintained Even with 97% Drop in BTC

Michael Saylor, chairman of the board at Strategy, stated that the asset coverage ratio of their preferred stock STRF would only drop to 1x if the price of Bitcoin falls by approximately 97%. STRF has a fixed annual dividend structure of 10% and emphasizes its ability to pay through its Bitcoin holdings. Saylor posted a video on X explaining the structure of STRF. STRF, which was first issued in March 2025 and listed on the NASDAQ, is a perpetual preferred stock that pays $10 in cash per share based on a $100 share price. Dividends are paid quarterly at $2.5 per share, and if the stock price is $103, the annual dividend yield is about 9.7%. He claimed that STRF's Bitcoin coverage ratio is approximately 31x and that this ratio would drop to 1x if the price of Bitcoin reaches $2,700. Additionally, he explained that if the price of Bitcoin rises by an average of 2.2% annually, it would cover all interest and dividends. Currently, the dollar reserves are at a level that can cover about three years' worth of preferred stock dividends and debt interest payments. However, STRF is an investment product with no principal guarantee, and investment risks may arise due to fluctuations in Bitcoin prices.

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