Quick Summary
- Strategy’s common stock plunged nearly 6% to approximately $109 following STRC preferred shares hitting an all-time low of $89
- With STRC trading beneath its $100 par value, the company has suspended new stock issuance for bitcoin purchases
- The firm offloaded 32 bitcoin in May to cover STRC dividend obligations — marking its first BTC liquidation since 2022
- Board member Jarrod Patten liquidated approximately $9M worth of MSTR shares across a three-month period; additional executives sold earlier this year
- Wall Street firms including Bernstein, TD Cowen, Citigroup, and BTIG maintained positive outlooks with price targets ranging from $250 to $450
Strategy (MSTR) stock experienced a sharp 6% decline Thursday, hovering around $109, as the company confronted mounting challenges from several fronts — deteriorating preferred share valuations, executive stock disposals, and a softening bitcoin market in the aftermath of the Federal Reserve’s recent policy announcement.
The primary catalyst was the performance of STRC, Strategy’s Stretch preferred equity instrument, which plummeted to an unprecedented low of $89. This development carries significant implications because STRC’s price now sits beneath its $100 par designation, compelling Strategy to suspend its at-the-market offering program — the primary vehicle through which it generates capital for bitcoin acquisitions.
With this financing avenue temporarily closed, Strategy’s fundamental bitcoin accumulation model has ground to a halt.
Company Breaks Bitcoin Sale Moratorium
Toward the end of May, Strategy liquidated 32 bitcoin for roughly $2.5 million to satisfy STRC dividend requirements. This represented the company’s first bitcoin disposition since initiating its accumulation program in 2022.
Executive Chairman Michael Saylor had consistently championed a hold-forever philosophy regarding bitcoin. The sale marked a significant shift from that established approach, though analysts from Benchmark and TD Cowen dismissed concerns about systematic unraveling.
Compounding competitive dynamics, Strive’s competing SATA preferred instrument is changing hands above $99 while offering a 13.69% yield, attracting yield-seeking investors toward an alternative vehicle.
Cryptocurrency market maker QCP projects Strategy maintains approximately 7.5 months of available liquidity for preferred dividend obligations. QCP highlighted that the company may ultimately confront decisions involving additional capital raises, increased shareholder dilution, or further bitcoin liquidations.
Strategy recently bought back nearly $1.5 billion of convertible debt instruments maturing in 2029 while securing roughly $200 million through MSTR equity sales — a portion of which financed an additional $100 million bitcoin acquisition.
Executive Stock Disposals Intensify Concerns
Board member Jarrod Patten executed options on 1,500 Class A shares at an exercise price of $18.236, subsequently selling them at approximately $134, realizing roughly $200K in proceeds. Throughout the preceding three-month window, Patten has disposed of 55,750 MSTR shares generating aggregate proceeds nearing $9 million.
He maintains ownership of 28,406 Class A shares plus 44,250 unexercised director options.
Earlier in 2026, Chief Executive Phong Le, Chief Financial Officer Andrew Kang, and former Executive Vice President Wei-Ming Shao also liquidated millions in MSTR holdings.
The Federal Reserve unanimously voted 12-0 on June 17 to maintain the federal funds rate at 3.50%–3.75%, though the updated dot plot revealed nine of 18 FOMC participants now anticipate at least one rate increase before 2026 concludes. This hawkish shift pressured bitcoin and cryptocurrency-related equities despite strength in broader market indices.
Bitcoin was changing hands near $63,850 at publication time, declining approximately 2% over the previous 24 hours. At current pricing, Strategy’s holdings reflect an unrealized loss of roughly $11,658 per coin relative to its average purchase price.
MSTR concluded Wednesday’s session down 5.09% at $116.56, before sliding another 2.1% to $114.04 during Thursday morning trading. The equity has now surrendered approximately 31% of its value over the past 30 days.
Notwithstanding these headwinds, Bernstein reaffirmed its buy recommendation alongside a $450 price objective. TD Cowen maintains its $350 target, Citigroup stands at $260, and BTIG holds at $250.
