Strategy stock crashes below $100 as Bitcoin losses top $11 billion

Strategy's stock fell below $100 for the first time since March 2024, extending a collapse that erased more than 80% of its value from a November peak of about $474.

"The company's leveraged Bitcoin exposure is now working in reverse — as BTC falls, the stock falls faster," Peter Schiff, chief economist at Euro Pacific Asset Management, said in a social media post, warning that Strategy may be forced to sell its Bitcoin holdings to meet dividend obligations.

Strategy holds 847,363 BTC valued at roughly $53 billion at current prices near $61,000, against an average acquisition cost of about $75,656 per coin — an unrealized paper loss of more than $11 billion, according to CryptoQuant data. The company's variable-rate perpetual preferred stock, STRC, traded near $84, well below its $100 par value, as annualized dividend obligations climbed to about $1.2 billion, CryptoQuant Head of Research Julio Moreno said.

The funding model that powered Strategy's Bitcoin accumulation is under strain. Moreno estimated the company would need about $2.8 billion in reserves to restore 24 months of dividend coverage, up from roughly 14 months currently. Strategy sold 32 BTC on June 1 — its first sale since 2022 — to demonstrate it could cover dividends through asset liquidation, a move that sent MSTR down nearly 6%.

The stock closed at $98.83 on Wednesday, down about 5%, after breaching the psychologically important $100 threshold last tested in March 2024. The decline has wiped out roughly $153 billion in market value from the November 2024 peak, according to data from CoinGecko.

Strategy's preferred stock structure has become a focal point for investors. STRC's decline below par pushed its effective yield higher, raising the company's cost of capital at a time when it continues to accumulate Bitcoin. The company added 1,587 BTC for $100 million earlier in June and another 520 BTC for $35 million on June 22, funded through common stock issuance.

Benchmark analyst Mark Palmer maintained a 'Buy' rating and $570 price target on MSTR, describing STRC's decline as a market-driven reset of necessary yield rather than a structural breakdown, according to a research note.

The transmission chain is clear: Bitcoin's decline from 2025 highs has reduced the value of Strategy's treasury, compressing the premium to net asset value that MSTR once commanded. That compression, combined with rising preferred dividend costs, has created a feedback loop that pushed the stock below $100 — a level that would have seemed unthinkable when MSTR traded above $470 six months ago.

This article is for informational purposes only and does not constitute investment advice.