Strategy (MSTR) Shares Plunge Below $100 as Bitcoin (BTC) Nears $60K

Bitcoin is sliding again, and Strategy (MSTR), the largest corporate holder of the cryptocurrency, is feeling the pain even more sharply. Bitcoin price drop pressure has pushed MSTR shares to their lowest level in over two years, with a cluster of concerns about the company's balance sheet and dividend commitments adding fuel to the selloff.

At a Glance

• Bitcoin is trading at $62,658.40, down 2.02% on the day
• MSTR shares fell as low as $97.30 Wednesday, the first time below $100 since March 1, 2024
• Strategy stock is down roughly 20% over the past week and more than 38% over the past month
• STRC preferred shares dropped to $82.53 last week and are trading near $84.35, down 3.4%
• Bitcoin peaked above $126,000 last October and has since lost more than half its value

A Two-Year Low for MSTR as Bitcoin Stumbles

About thirty minutes after Wednesday's opening bell, MSTR dropped to $97.30 per share before stabilizing around $98.05, according to Yahoo Finance data. That marks a nearly 5.5% single-day drop, and it is the first time the stock has traded under $100 since March 1, 2024. Back then, Bitcoin was sitting in roughly the same $61,000 to $62,000 range it occupies today.

The timing is uncomfortable for the company's supporters. Strategy shares climbed above $400 earlier in 2025, riding the wave of optimism that followed President Donald Trump's more crypto-friendly policy signals. Bitcoin itself set a new all-time high above $126,000 last October. Both have given back enormous ground since those peaks.

Bitcoin's current weakness reflects a broader shift in investor appetite. Money has been flowing out of Bitcoin ETFs, and many traders have pivoted toward AI stocks in search of larger near-term gains. A more hawkish tone from the Federal Reserve has also weighed on risk assets across the board.

The Cracks in Strategy's Bitcoin Model

Strategy built its reputation on an aggressive, unapologetic accumulation strategy. Co-founder and executive chairman Michael Saylor spent years preaching a "buy and never sell" philosophy, and the market rewarded that conviction handsomely during bull runs. That image cracked in early June when Strategy disclosed its first Bitcoin sale since 2022, unsettling investors who had priced in the idea that the company would hold through any downturn.

Bitcoin had already been struggling to reclaim ground above $70,000 before that disclosure. The sale confirmed what some analysts had worried about: the model has limits. Strategy holds roughly $52 billion worth of Bitcoin, making it both a corporate pioneer and an enormous single point of exposure to whatever BTC does next.

As the inventor of the crypto treasury playbook that other companies copied last year, Strategy's bullish moves have helped lift Bitcoin during good times. The flip side is real too: when sentiment turns, the company's size and visibility can amplify the negativity.

Preferred Shares Add Another Layer of Pressure

Strategy's STRC preferred shares were designed to trade near $100 and have been central to funding the company's Bitcoin purchases this year. They fell to $82.53 last week, a level that rattled investors, and are trading around $84.35 on Wednesday, down 3.4% on the day. The concern is straightforward: if the preferred shares stay depressed, the company may need to sell more Bitcoin to cover dividend obligations, which would put further downward pressure on BTC and, in turn, on MSTR itself.

That loop is what worries the market right now. Strategy's cash reserves stand at $1.4 billion after STRC's stumble, which provides some runway, but the anxiety about forced selling has not gone away. Crypto markets move fast and punish leveraged structures quickly, and Strategy's model is among the most leveraged Bitcoin bets in the corporate world.

Frequently Asked Questions

Why did MSTR stock fall below $100?

Shares dropped below $100 on Wednesday for the first time since March 2024, driven by a fresh decline in Bitcoin prices and growing investor concern about Strategy's ability to meet dividend obligations on its STRC preferred shares without selling more Bitcoin.

What is STRC and why does it matter?

STRC is a class of preferred shares issued by Strategy to raise capital for Bitcoin purchases. It was designed to trade near $100, but falling to the low $80s has raised fears that the company may need to liquidate some of its Bitcoin holdings to keep up with dividend payments.

Has Bitcoin been at these levels before?

Yes. Bitcoin was trading in the $61,000 to $62,000 range in early March 2024, roughly where it sits today. It subsequently surged to an all-time high above $126,000 last October before retreating more than 50% to its current level.

Is cryptocurrency investing risky?

Crypto assets are among the most volatile investments available. Prices can move dramatically in short periods, as Bitcoin's drop from over $126,000 to around $62,000 illustrates. Anyone considering exposure should understand that sharp, rapid losses are a genuine possibility.

Where Things Stand

Strategy's story right now is really Bitcoin's story with extra complexity layered on top. The coin is down, the stock is down more, and the preferred shares are down too. Until Bitcoin finds a floor and starts recovering, the pressure on MSTR is unlikely to ease. How the company manages its dividend obligations and whether it sells more Bitcoin in the weeks ahead will be the details worth watching closely.