TLDR
- MSTR stock fell 9% to $85.73 on June 25, hitting its lowest point since February 2024
- STRC, Strategy’s perpetual preferred stock, has dropped 25% from its $100 par value target to $75
- Strategy still holds 10 months of U.S. dollar reserves to cover STRC dividend obligations
- Director Jarrod Patten sold 1,500 MSTR shares on June 23, netting ~$131,766 profit; he has sold 55,750 shares in three months
- The bigger problem is investor trust, not solvency, according to analysts
Strategy (MSTR) stock tumbled to $85.73 on Thursday, June 25 — a 9% drop in a single session and a new 52-week low. The stock hasn’t traded this low since February 2024.
At the same time, STRC, Strategy’s perpetual preferred stock, continued its slide to around $75. That’s a 25% discount to its $100 par value target, a level it was explicitly designed to hold near.
The mNAV — the company’s enterprise multiple to net asset value — has compressed to just 1.05, down sharply from the premium that once drove bullish sentiment around the stock.
The Cash Position Is Not the Problem
Despite the selloff, Strategy’s balance sheet is not in immediate danger. The company still holds enough U.S. dollar reserves to cover STRC dividend payments for approximately 10 months. The current price of STRC does not threaten those payments.
But what the drop does do is make Strategy’s bitcoin acquisition engine less efficient. When STRC trades well below $100, the company can no longer issue preferred stock on attractive terms — making it harder to fund further bitcoin purchases at scale.
Benchmark analyst Mark Palmer had flagged this dynamic previously.
Director Selling Adding to Pressure
Strategy director Jarrod Patten sold 1,500 Class A shares on June 23, exercising options at a strike price of $18.236 per share. He sold those shares at $106.08 each, generating roughly $159,120 in proceeds and a pre-tax profit of around $131,766.
It wasn’t a one-off. Patten has sold 55,750 MSTR shares over the past three months, pulling in approximately $9 million in total profit. An earlier sale in June saw him exit at around $134 per share.
Insider selling at these prices is drawing attention, particularly from investors already watching the stock fall.
Trust, Not Solvency
Two Prime CEO Alexander Blume put it plainly: the real damage here is to credibility.
“Beyond any spreadsheet or logic, markets are about trust, especially when your investor base is retail-centric,” Blume said. “Saylor’s repeated pivots and deviations from his stated plans, alongside poor performance of STRC and MSTR, have broken that trust.”
STRC was marketed as a low-volatility income product for retail investors — a stable, near-$100 instrument paying steady dividends. Its collapse to $75 has hit those buyers hardest.
Blume, who had warned back in March that a product paying more than 6% over Treasuries must carry additional risk, says that risk has now materialized.
He added that Strategy looks “highly unlikely” to be a meaningful buyer of bitcoin in the near term.
Bitcoin dropped to $58,000 on Thursday as MSTR fell, down 54% from its high. Peter Schiff posted on X that MSTR’s decline was contributing to the broader crypto selloff.
Meanwhile, Rosen Law Firm has launched an investigation into Strategy over a potential securities claim from shareholders.
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