Strategy (MSTR), the Bitcoin treasury company led by Michael Saylor, has fallen below $100 for the first time since March 2024.
The drop marks a major reversal for one of Wall Street’s most popular Bitcoin-linked stocks.
Bitcoin’s decline started the chain reaction
The slide comes as Bitcoin trades near $61,000, underscoring the tight relationship between Strategy’s share price and the cryptocurrency dominating its balance sheet.
Strategy owns 847,363 Bitcoin, making it the largest corporate holder of the asset globally.
That massive position transformed MSTR from a software stock into a leveraged Bitcoin vehicle, often outperforming when Bitcoin surged.
The reverse is now happening, as falling Bitcoin prices dragged the value of Strategy’s treasury down and cooled appetite for leveraged crypto exposure.
The funding engine is under pressure
Bitcoin’s decline alone does not explain the magnitude of the selloff.
A key concern is STRC, Strategy’s preferred stock vehicle used to help fund Bitcoin purchases.
The security was designed to trade near its $100 par value, but recently slipped well below that level.
As STRC fell, its effective yield climbed sharply, increasing financing costs and making it harder to raise fresh capital on attractive terms.
Strategy’s accumulation strategy depends on efficient access to capital, so a weakening funding engine drags growth expectations lower.
The first Bitcoin sale shook confidence
The pressure intensified when Strategy disclosed the sale of 32 Bitcoin to fund preferred stock distributions.
The amount was tiny relative to the company’s holdings, but the symbolism mattered.
For years, Strategy built its reputation around a near-sacred “never sell Bitcoin” philosophy, and even a small sale challenged that narrative.
Investors are now watching whether Bitcoin holds the $60,000-$61,000 range and whether Strategy can maintain confidence in its capital-raising model.
