TLDR
- MSTR stock fell to its lowest level in over two years, down 46% over the past 30 days, trading at $82.31
- Strategy’s preferred stock (STRC) dropped to a record low of $71.40 — nearly 26% below its $100 par value
- Annual dividend obligations on preferred stock have quadrupled to $1.2 billion since the start of 2026
- Strategy’s enterprise mNAV briefly fell below 1.0, meaning the market values the company at less than its bitcoin holdings
- Bitcoin fell to $58,000 on Thursday, well below Strategy’s average buy price of $75,000 per coin
Strategy (MSTR) stock is under serious pressure. The company, the largest corporate holder of bitcoin, is caught in a financial bind that’s getting harder to escape.
MSTR closed at $82.31 on Friday, down 3.54% on the day. That marks a 46% drop over the past 30 days and the stock’s lowest level in over two years.
Bitcoin fell to $58,000 on Thursday and was hovering around $59,560 on Friday. Strategy’s average cost per coin sits at approximately $75,000 — meaning the company is sitting on an unrealized loss on its bitcoin treasury, currently valued at around $50 billion.
The root of the problem is Strategy’s preferred stock. Starting in 2025, the company began issuing high-dividend preferred stock to fund bitcoin purchases. It seemed clever at the time. Now it’s a liability.
Annual dividend obligations tied to those preferred stocks have quadrupled since the start of 2026, reaching $1.2 billion. Meanwhile, cash reserves have dropped to around $1.4 billion — leaving only about 10 months of coverage.
That gap is spooking investors.
Preferred Stock Hits Record Low
Strategy’s most widely held preferred stock, STRC, briefly fell to a record low of $71.40 on Friday. It’s designed to trade at $100. It closed at $74.72 — still nearly 26% below par.
“They have a big problem,” said Jeff Dorman, CIO at Arca. “They can’t satisfy all parts of their capital structure.”
Crypto research firm CryptoQuant says Strategy needs to rebuild cash reserves to around $2.8 billion — enough for 24 months of dividend coverage — before the preferred stock has any real chance of recovering.
That means Strategy needs to raise cash. Fast.
The options aren’t great. It can issue more common stock, which dilutes existing holders. It can sell bitcoin, which damages the core narrative the company has built its identity around. CEO Michael Saylor said in late May he believed bitcoin had bottomed at $60,000. Days later, the company used most of its cash reserve to repay $1.5 billion in debt.
“They’re in a pickle, and they have to sell something,” said Sean Farrell, head of digital assets at Fundstrat.
Enterprise mNAV Dips Below 1
For the first time in recent memory, Strategy’s enterprise mNAV — a metric comparing the company’s total market value, including debt and preferred stock, against its bitcoin holdings — briefly slipped below 1.0 on Friday.
That means the market is now valuing Strategy’s overall capital structure at less than the bitcoin it holds. It’s a milestone that signals eroding investor confidence.
Dorman called the situation “self-inflicted” and said the best path forward is to sell a large chunk of bitcoin outright. “Anytime you have a big problem, treating it in small doses never works,” he said.
Farrell leaned toward continued common stock issuance as the least damaging option. Both analysts warned that if the situation worsens, shareholder lawsuits could follow.
Strategy is not alone. Japan’s Metaplanet trades at an enterprise mNAV of around 0.9. Nakamoto sits at 0.92. Strive, which runs a similar structure, remains above parity at 1.24.
CryptoQuant published its warning note on Wednesday. By Friday, the numbers had already gotten worse.
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