Arca chief investment officer Jeff Dorman says Strategy’s Bitcoin accumulation playbook has hit a breaking point, with roughly $15 billion in preferred stock and $1.5 billion in annual dividend obligations now colliding with a weakening cash buffer and softer Bitcoin (BTC) price.

The warning lands after Strategy used most of its cash reserve to buy back $1.5 billion of zero-coupon convertible notes due 2029, leaving $871 million on hand to meet recurring preferred dividend obligations.

The Preferred Stock Problem

MicroStrategy holds 843,738 BTC as of May 25, after building out a preferred stock structure totaling roughly $15.5 billion across STRC, STRK, STRF, and STRD series.

The STRC tranche alone pays a variable…