Saylor’s Preferreds Boom Comes Into Question as Bitcoin Slumps

The plunging value of Bitcoin is piling pressure on the securities Strategy Inc. has been issuing in bulk to buy the asset, raising questions about the financing model of the world’s largest crypto treasury firm.

Prices across the several preferred stock series sold by the Tysons Corner, Virginia-based firm have been falling this week, in line with a slump in Bitcoin’s value. A $1.2 billion 10% issue that was priced at 85 cents on the dollar in June is now down to 66 cents, pushing up the yield to 15%, based on data compiled by Bloomberg. Other issues are also ...