Strategy Stock Falls Below $100 for First Time Since 2024
Strategy's stock fell below $100 this week for the first time since March 2024.
The company now sits on more than $10 billion in unrealized losses on the single asset its entire business model is built around.
What Actually Happened to the Stock
MSTR shares closed at $94.97 on Wednesday, down 9.7% in a single session, according to Yahoo Finance's reporting on the decline.
That puts the stock 79.2% below its 52-week high of $455.90, reached in July 2025, and marks a two-year low for the company.
The trigger was Bitcoin itself. The cryptocurrency briefly dipped below $60,000, its worst single-day drop in months, pulling MSTR down with it given how directly the stock's value now tracks the company's bitcoin holdings.
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The Symbolic Sale That Spooked Investors
What made this drop different from previous Bitcoin-driven dips was a single disclosure buried in the numbers.
Strategy revealed it had sold a small amount of Bitcoin, just 32 coins worth roughly $2.5 million, to help fund preferred stock dividend payments, according to coverage of the company's filing.
The amount itself was negligible against the company's 847,363-bitcoin stockpile. The symbolism wasn't. It marked Strategy's first Bitcoin sale in 41 months, breaking a "never sell" philosophy the company had built its entire reputation on under CEO Michael Saylor.
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Why the Preferred Stock Problem Matters More Than the Price
Strategy's real vulnerability isn't just Bitcoin's price. It's the financing structure built on top of it.
The company's preferred stock vehicle, STRC, is designed to trade near a $100 par value through a monthly-adjusting dividend. It has instead slipped well below that mark, according to FXStreet's analysis of the company's filings, forcing Strategy to pause the at-the-market issuance program it relies on to raise fresh capital without diluting common shareholders.
That issuance program has been the engine behind Strategy's entire growth model: issue stock or preferred shares while MSTR trades at a premium to its bitcoin holdings, use the proceeds to buy more bitcoin, and let that boost the per-share value further. With MSTR now trading at roughly 0.80 times its bitcoin net asset value, a discount rather than a premium, both of the company's main capital-raising tools are constrained at the same time.
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The Numbers Behind the Strain
CryptoQuant's head of research, Julio Moreno, laid out the specific pressure points in a note published this week.
Strategy's annual dividend obligations across its stack of preferred instruments — STRC, STRK, STRF, STRD, and STRE — have grown from roughly $300 million at the start of 2026 to approximately $1.2 billion now, a near fourfold increase in under six months.
Cash reserves have fallen 38% this year, and dividend coverage, once more than seven years, has compressed to around 14 months. CryptoQuant recommended the company pause Bitcoin accumulation entirely and rebuild cash reserves to roughly $2.8 billion before resuming purchases.
What Happens If Bitcoin Doesn't Recover
The risk longtime Bitcoin critic Peter Schiff has flagged isn't just that MSTR keeps falling. It's what Saylor might be forced to do about it.
If shares continue declining, Schiff argues, Saylor could face pressure to sell more Bitcoin to meet financial obligations — a move that would put further downward pressure on the very asset propping up the company's valuation, creating the kind of feedback loop that built Strategy's stock price on the way up and could now work in reverse.
Strategy's holdings, acquired at an average price of roughly $75,680 per coin, sit at a gap of more than $16,000 per coin against Wednesday's price near $59,300, a spread that widens or narrows with every move in Bitcoin's price from here.
Key Takeaways
- Strategy (MSTR) stock closed at $94.97 on Wednesday, down 9.7%, its lowest level since March 2024.
- The drop tracked Bitcoin's slide below $60,000, its worst single-day loss in months.
- Strategy disclosed its first Bitcoin sale in 41 months — just 32 coins — to fund preferred stock dividends.
- The company's preferred stock, STRC, has fallen well below its $100 par value, forcing a pause on capital raising.
- Dividend obligations have grown nearly fourfold in six months, reaching roughly $1.2 billion annually.
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Business & Finance Editor
Sarah Collins reports on markets, Wall Street, corporate news, and the global economy. She specializes in making financial news accessible to everyday readers.
