Strategy (MSTR) fell below $100 for the first time in two years on Wednesday, extending a drawdown that has erased roughly 81% from the stock's peak and approximately $153 billion in market value. The stock was down 9.26% on Wednesday to $94.13, with volume at 39 million shares — roughly 4x its average.
Bitcoin was trading at $60,770 Thursday morning, down 3.03% over the past 24 hours and 20.65% over the past month. The broader crypto selloff — ETH -2.90% to $1,617, SOL -2.82% to $67.56 — reflects a risk-off environment that has compounded pressure on equity proxies like MSTR.
The collapse maps directly onto Bitcoin's price deterioration. Strategy held 847,363 BTC as of June 21, worth roughly $53 billion at current prices. At BTC's September 2025 peak near $93,000, that same stack was worth approximately $78.8 billion — a $25 billion vaporization that has destroyed the equity cushion underpinning the company's leveraged swap structure.
That structure — swapping Strategy shares for Bitcoin via perpetual preferreds — only works when MSTR trades above the conversion price. Now the preferred (STRC) is trading near $84, well below its $100 par value, which strains the funding model.
Some argue that Strategy's STRC falling below the $100 mark was primarily the result of leveraged positions being liquidated.
— Julio Moreno (@jjcmoreno) June 23, 2026
While this may be true to some extent, we believe the correction was largely driven by a deterioration in Strategy's fundamentals, as STRC's dividend… pic.twitter.com/Gt8JrU5qgG
CryptoQuant head of research Julio Moreno urged the company in a Tuesday report to pause BTC purchases and rebuild cash reserves. His analysis: annualized dividend obligations have climbed to roughly $1.2 billion, cutting dividend coverage from over seven years to about 14 months. Moreno estimated Strategy would need approximately $2.8 billion in reserves to restore 24 months of coverage — versus the $1.4 billion it currently holds.
