Strategy Shares Fall Below $100 for First Time Since March 2024 as Bitcoin Slides Below $60,000

Strategy (MSTR) shares fell to a two-year low Wednesday, dropping as far as $92.28 in morning trading before recovering slightly to close at $94.13, an 8% decline on the day. The move puts the stock back at price levels last seen in March 2024, completing a slide of roughly 20% over the past week and nearly 40% over the past month.

MSTR’s fall coincided with a Bitcoin drop to a two-week low below $60,000. The cryptocurrency has now fallen more than 50% from the all-time high above $126,000 it set last October, amid macroeconomic and geopolitical uncertainty and investor focus on AI. The Fed’s more hawkish tone and sustained outflows from bitcoin spot ETFs have compounded the pressure throughout June.

Strategy’s embattled STRC preferred stock was not spared in Wednesday’s rout. The security, which has funded billions of dollars in bitcoin purchases this year, reached a new record low of $79.85 before recovering slightly to close at $80.84, a 6.5% decline on the day.

STRC, which was designed to trade near $100, has experienced an extended drawdown in the past month, signaling market unease about Strategy’s ability to meet roughly $1.5 billion in annual dividend obligations across its preferred share classes without turning to its bitcoin holdings.

Strategy’s decision late last month to sell 32 BTC to fund STRC negated the “never sell your Bitcoin” rhetoric company Chair Michael Saylor has espoused for years. While Strategy has since acquired more Bitcoin, the market still appears spooked.

As of Strategy’s most recent disclosure, it holds 847,363 BTC at an average cost basis of approximately $75,653 per coin, putting the entire position underwater at current prices.

Related Listen: https://unchainedcrypto.com/how-digital-credit-assets-like-strc-and-sata-differ-from-bitcoin-or-dat-stocks/

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