Strategy director dumps $9M in shares as STRC rout hits MSTR stock

A Strategy director has sold nearly $9 million worth of company shares over the past three months as pressure on the firm’s preferred stock offerings and concerns over future dividend funding continue to weigh on MSTR.

Summary

• Strategy director Jarrod Patten has sold nearly $9 million worth of MSTR shares over the past three months.
• QCP estimates Strategy has about 7.5 months of liquidity to support preferred stock dividend payments.
• Bernstein maintained its $450 MSTR price target despite the stock falling roughly 31% over the past month.

According to a recent filing with the U.S. Securities and Exchange Commission, Strategy director Jarrod Patten exercised options to acquire 1,500 Class A shares at a strike price of $18.236 and immediately sold them on the open market at roughly $134 per share, generating a profit of around $200K.

The transaction adds to a steady pattern of insider selling. SEC filings show Patten has disposed of 55,750 MSTR shares during the last three months, with total proceeds approaching $9 million. His latest sale comes as Strategy stock remains under pressure following a sharp decline in both Bitcoin and the company’s preferred securities.

Following the transaction, Patten still holds 28,406 Class A shares, positions across several Series A perpetual preferred stock offerings, and 44,250 unexercised director stock options.

Dividend concerns have moved into focus

Attention has increasingly shifted toward Strategy’s ability to support dividend obligations tied to its preferred stock products.

According to market maker QCP, Strategy’s current liquidity position can fund dividend payments for roughly seven and a half months. 

As crypto.news reported, QCP said the company could eventually face a decision between raising additional capital, diluting shareholders further, or selling Bitcoin if alternative funding sources become less attractive.

The concern emerged shortly after Strategy completed several balance-sheet transactions. QCP noted that the company repurchased nearly $1.5 billion of convertible notes due in 2029 while raising approximately $200 million through MSTR stock sales. Part of those proceeds was later used to acquire another $100 million worth of Bitcoin.

Investor attention has also centered on Strategy’s preferred securities. STRC, the company’s Stretch preferred stock, recently fell to a record low of $89, leaving it about 11% below its intended $100 value and increasing scrutiny of the firm’s capital structure.

Earlier this month, Strategy disclosed the sale of 32 BTC valued at approximately $2.5 million to fund STRC dividend payments. The transaction marked the first known Bitcoin sale by the company after years of maintaining a strict accumulation strategy.

Analyst targets remain unchanged despite weakness

Selling activity by company insiders has continued throughout 2026. Earlier filings showed Chief Executive Officer Phong Le, Chief Financial Officer Andrew Kang, and former Executive Vice President Wei-Ming Shao collectively sold millions of dollars’ worth of MSTR shares in March. Kang and Patten reduced their holdings as the stock weakened despite record highs in major U.S. equity indexes.

MSTR closed 5.09% lower at $116.56 on Wednesday as risk assets weakened after the Federal Reserve kept interest rates unchanged at 3.50% to 3.75% while signaling potential tightening risks for 2026. The stock extended its decline on Thursday, falling another 2.1% to $114.04. With those losses, MSTR is now down roughly 31% over the past month.

Meanwhile, Bitcoin traded near $63,850 at press time after dropping nearly 2% in the past 24 hours.

Despite the recent decline, analysts at TD Cowen, Citigroup, Bernstein, and BTIG have maintained their existing bullish ratings on MSTR shares. Bernstein analysts reiterated a buy rating and kept a 12-month price target of $450, while TD Cowen targets $350, Citigroup holds at $260, and BTIG maintains a target of $250.