(NASDAQ:MSTR) shares of Strategy Inc. (NASDAQ:MSTR) fell below $100 on Wednesday for the first time since March 2024, extending a collapse that wiped out more than 80% of the stock’s value from its all-time high of roughly $474 reached in November 2024.
Breaking the $100 threshold carries weight beyond the number itself. Strategy, a Bitcoin treasury led by CEO Michael Saylor, built its investment thesis around the premise that its exposure to Bitcoin would generate returns superior to traditional assets.
This thesis is now under pressure, as is Bitcoin Deals Nearly $61,000 – well below the company’s average acquisition cost of about $75,656 per coin.
strategy He carries 847,363 bitcoins across its treasury, a position estimated to be worth about $53 billion at current prices. Against an average cost basis that implies a total investment of close to $64 billion, the company has an unrealized paper loss of more than $11 billion. This gap between cost and market value has become a drag on the stock.
The decline has been accelerated by a series of events over the past six weeks. In May, the strategy used cash reserves to Buy back $1.5 billion of convertible notes at a discount, reducing the dividend cover buffer from a target of 24 months to approximately six months at the lowest point.
On June 1, the company Sold 32 BTC – the first Bitcoin sale since 2022 – to demonstrate its ability to cover dividend obligations by liquidating assets if necessary. MSTR shares fell nearly 6% on this news.
The strategy’s STRC is under pressure
The company’s preferred stock, STRC, was also under pressure. The instrument fell to a record low of $83 in mid-June, well below its face value of $100. strategy ever since more STRC has doubled earnings twice a month and built cash reserves back to nearly $1.1 billion, but the market has yet to get the preferred stock back on par.
Speaking at the Bitcoin Conference, Saylor said Strategy Preferred STRC shares have become one of the fastest growing credit products globally, attracting billions in retail capital by offering an 11.5% dividend while leveraging Bitcoin as its primary capital base.
He argued, at the time, that scaling up Bitcoin-backed digital credit products like STRC could significantly expand Bitcoin adoption and lead to higher prices in the future.
The strategy did not stop buying Bitcoin. Company He added 1,587 BTC for $100 million earlier in June and 520 BTC for $35 million on June 22. But continued accumulation at prices above current market value has done little to restore confidence among common shareholders.
Strategy shares are currently worth $98.83.
