Key Takeaways
- The company’s bitcoin treasury contains 847,363 BTC valued at approximately $50.8 billion, but faces roughly $13 billion in unrealized losses with an average purchase price of ~$75,646 per coin and bitcoin trading near $60,000.
- Executive Chairman Michael Saylor shared his characteristic “we’re gonna need more charts” message on X, suggesting another BTC acquisition could be announced as soon as Monday.
- MSTR shares declined to approximately $82, marking the lowest price point since February 2024, while the preferred shares STRC touched a new all-time low around $71 during the previous week.
- For the first time ever, Strategy’s enterprise mNAV dropped beneath 1, indicating the market is valuing the entire company at less than its bitcoin holdings alone.
- Both Ripple’s CEO Brad Garlinghouse and blockchain analytics provider CryptoQuant have openly criticized Strategy’s capital structure and funding approach, with CryptoQuant recommending a temporary halt to further purchases.
Shares of Strategy (MSTR) have fallen to their weakest point since February 2024, hovering around $82 following an approximately 8% decline last Thursday. The company’s preferred shares, trading under the ticker STRC, similarly touched an all-time low near $71 during the previous week.
Despite the pressure, Michael Saylor remains undeterred.
On Sunday morning, the executive chairman of Strategy shared the firm’s bitcoin purchase tracking chart on X, accompanied by his familiar phrase “We’re gonna need more charts.” This messaging pattern preceded confirmed acquisitions on both June 7 and June 21. Market observers anticipate a potential Monday 8-K disclosure.
The company’s bitcoin position stands at 847,363 BTC with an average acquisition cost of approximately $75,646 per token. Given bitcoin’s current trading price below $60,000, the corporate treasury is carrying an unrealized deficit of roughly $13 billion. According to estimates from The Block, this unrealized shortfall could potentially reach $14 billion as the market downturn intensifies.
The firm’s latest acquisition represented its most modest recent purchase. On June 22, Strategy revealed the purchase of 520 BTC for approximately $35 million while simultaneously adding $300 million to its cash reserves, bringing the total dollar reserve to $1.4 billion. Saylor has indicated the company maintains sufficient reserves to satisfy STRC dividend requirements for approximately 10 months.
Capital Structure Faces Scrutiny
The dual pressure from declining equity valuations and a discounted preferred share price has driven Strategy’s enterprise mNAV below 1 for the first time in company history. This benchmark compares the organization’s complete market capitalization — encompassing debt instruments and preferred equity — against the current value of its bitcoin position. A reading below 1 significantly complicates future capital raises through equity issuance.
STRC features an 11.5% annual dividend yield and was structured to maintain trading levels near its $100 par value. Current pricing sits around $74.57.
According to analysis from Block Research, MSTR common shareholders effectively hold a position subordinate to approximately $6.7 billion in convertible debt obligations and roughly $15.5 billion in perpetual preferred equity, transforming it into a highly leveraged residual interest rather than a straightforward bitcoin investment vehicle.
The company executed its first bitcoin sale since 2022 on June 1, disposing of 32 tokens for approximately $2.5 million to fulfill a STRC dividend obligation, before returning to its pattern of weekly acquisitions.
Industry Voices Raise Concerns
Ripple’s CEO Brad Garlinghouse shared his perspective with CNBC on Friday, stating that Saylor’s organization “wasn’t focused on the right stuff” and arguing that Strategy’s methodology has negatively impacted the wider cryptocurrency market. He referenced STRC’s significant discount as proof of structural weaknesses.
Blockchain analytics provider CryptoQuant escalated the criticism on June 23, recommending that Strategy temporarily suspend all bitcoin purchases and focus on strengthening its cash position. The firm’s head of research, Julio Moreno, highlighted that annual dividend commitments have increased fourfold to approximately $1.2 billion, while STRC coverage has contracted from over seven years to roughly 14 months. CryptoQuant’s analysis suggests Strategy requires around $2.8 billion in reserves to reestablish two years of dividend coverage.
Bitcoin was changing hands below $60,000 on Sunday, approaching its weakest levels since October 2024.
