A Strategy director has offloaded nearly $9 million worth of company stock over the past quarter, as the firm’s preferred shares come under pressure and concerns mount over its ability to sustain dividend payments. Jarrod Patten recently exercised options to acquire 1,500 Class A shares at $18.236 each and promptly sold them on the open market near $134, netting a gain of approximately $200,000.
SEC filings reveal that Patten has sold a total of 55,750 MSTR shares in the last three months, with proceeds totaling close to $9 million. This latest transaction follows a downward trend in both Bitcoin and the company’s preferred securities. After the sale, Patten retains 28,406 Class A shares, holdings in multiple Series A perpetual preferred stock offerings, and 44,250 unexercised director stock options.
Investor focus has shifted to Strategy’s ability to meet dividend obligations tied to its preferred stock. According to QCP, the company’s current liquidity can fund dividend payments for about 7.5 months. QCP previously warned that Strategy might need to raise more capital, further dilute shareholders, or sell Bitcoin if alternative funding becomes less attractive. This concern emerged after Strategy repurchased nearly $1.5 billion in convertible notes due 2029 and raised roughly $200 million through MSTR stock sales, using part of the proceeds to buy $100 million worth of Bitcoin.
Strategy’s preferred securities are under scrutiny, with STRC falling to a record low of $89, about 11% below its $100 par value, raising questions about the firm’s capital structure. Earlier this month, Strategy sold 32 BTC for approximately $2.5 million to fund STRC dividend payments—a first for the company, which had long adhered to a strict buy-and-hold Bitcoin strategy.
Insider selling has persisted through 2026, with CEO Phong Le, CFO Andrew Kang, and former EVP Wei-Ming Shao collectively selling millions in MSTR shares in March. Kang and Patten reduced their holdings even as major U.S. indices hit records. MSTR closed Wednesday at $116.56, down 5.09%, after the Fed kept rates at 3.50%-3.75% and signaled potential tightening. The stock fell another 2.1% on Thursday to $114.04, marking a 31% decline over the past month. Bitcoin traded near $63,850, down nearly 2% in 24 hours.
Despite the downturn, analysts at TD Cowen, Citigroup, Bernstein, and BTIG have maintained bullish ratings on MSTR. Bernstein reiterated a buy rating and a $450 price target, while others target $350 (TD Cowen), $260 (Citigroup), and $250 (BTIG).