Shares of Strategy Inc. (NASDAQ: MSTR) crossed below $100 on Wednesday for the first time since March 2024, extending a collapse that has erased more than 80% of the stock’s value from its all-time high of approximately $474 reached in November 2024.
The breach of the $100 threshold carries weight beyond the number itself. Strategy, the Bitcoin treasury company led by Executive Chairman Michael Saylor, built its investment thesis around the premise that its leveraged exposure to Bitcoin would generate returns that outpace traditional assets.
That thesis is now under pressure as Bitcoin trades near $61,000 — well below the company’s average acquisition cost of roughly $75,656 per coin.
Strategy holds 847,363 BTC across its treasury, a position valued at approximately $53 billion at current prices. Against an average cost basis implying a total investment closer to $64 billion, the company is sitting on an unrealized paper loss of more than $11 billion. That gap between cost and market value has become a weight on the stock.
The decline accelerated through a series of events over the past six weeks. In May, Strategy used cash reserves to repurchase $1.5 billion in convertible bonds at a discount, cutting its dividend coverage buffer from a target of 24 months down to roughly six months at the low point.
On June 1, the company sold 32 BTC — its first Bitcoin sale since 2022 — to demonstrate that it could cover dividend obligations through asset liquidation if needed. MSTR shares fell nearly 6% on that news.
Strategy’s STRC is under pressure
The company’s preferred stock, STRC, has also come under pressure. The instrument fell to a record low of $83 in mid-June, far below its $100 par value. Strategy has since increased STRC dividend frequency to twice per month and rebuilt cash reserves to approximately $1.1 billion, but the market has not yet returned the preferred stock to par.
Speaking at The Bitcoin Conference, Saylor said Strategy’s STRC preferred stock has 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 underlying capital base.
He argued, at the time, that scaling Bitcoin-backed digital credit products like STRC could significantly expand Bitcoin adoption and drive future price appreciation.
Strategy has not stopped buying Bitcoin. The company 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 the current market value has done little to restore confidence among common shareholders.
Shares of Strategy are currently at $98.83.