Strategy shares fell to nearly a two-year low Wednesday, deepening the drawdown in Michael Saylor’s Bitcoin treasury vehicle as BTC traded far below the company’s average purchase price. MSTR
Strategy shares fell to nearly a two-year low Wednesday, deepening the drawdown in Michael Saylor’s Bitcoin treasury vehicle as BTC traded far below the company’s average purchase price.
MSTR recently traded near $103.84, leaving the stock down more than 80% from its peak and pushing the company’s equity value far below the headline value of its Bitcoin stack. Strategy’s market capitalization stood near $35 billion, while its 847,363 BTC treasury was worth roughly $53 billion at the current Bitcoin price.
That comparison is not the same as clean net asset value, because Strategy also carries preferred stock, debt, cash reserves and operating assets. The market reaction still shows how far investor appetite has fallen for the leveraged Bitcoin-equity model that made MSTR one of the biggest winners of the last cycle.
Strategy’s own Bitcoin purchase tracker lists 847,363 BTC acquired for about $64.1 billion at an average cost of $75,651 per coin. With Bitcoin trading near $62,500, the position is carrying an unrealized loss of roughly $11.1 billion on a spot-price basis.
Strategy added 520 BTC between June 15 and June 21 for about $34.9 million, paying an average price of $67,068 per coin. The purchase was small compared with prior accumulation waves, and it landed while the stock remained under pressure from weak Bitcoin prices, preferred-stock discounts and cash-reserve questions.
The company’s June 22 update also showed a $1.4 billion USD reserve, up from the prior week. That reserve is designed to support preferred dividends and debt interest, but investors have been watching how quickly those obligations can consume liquidity if Bitcoin stays weak and equity issuance becomes less attractive.
The pressure is most visible in Strategy’s preferred-stock complex. STRC, the company’s floating-rate monthly preferred, has traded well below its $100 stated amount, raising concern that investors now require much higher yield to keep financing Strategy’s Bitcoin strategy. Recent market coverage has already shown how STRC’s discount has tested preferred-stock demand as Bitcoin weakness and dividend obligations collide.
CryptoQuant has urged Strategy to pause new Bitcoin purchases and rebuild cash reserves, arguing that the company should prioritize balance-sheet coverage before expanding its BTC stack again. That warning lines up with the market’s current pricing: common shareholders are no longer rewarding every incremental Bitcoin buy the way they did when MSTR traded at a larger premium to its holdings.
Strategy’s problem is no longer only whether Bitcoin eventually recovers. The stock is now being priced against dividend coverage, cash reserves, preferred-stock yields, dilution risk and the company’s ability to keep raising capital without weakening Bitcoin per share.
That shift has already changed Saylor’s public framing. Strategy previously carried a strong “never sell” identity, but Saylor has since said the company can sell Bitcoin if its capital structure requires it. The company also sold 32 BTC in late May, a small sale in size but a large psychological break from the accumulation-only narrative.
The latest selloff revives the same debate. Strategy can keep buying BTC with equity proceeds when capital markets are open and the stock trades well. That model becomes harder when MSTR falls, preferred investors demand more yield and the company must protect enough cash to meet dividend and interest commitments.
Earlier CryptoAdventure coverage tracked the same pressure through Saylor’s comments that Strategy can sell Bitcoin if needed, while the latest price action shows why that statement now carries more weight. Strategy’s Bitcoin treasury is still enormous, but the balance sheet around it is becoming the market’s main focus.
MSTR is trading near $103, Strategy holds 847,363 BTC, and Bitcoin would need to climb back above the company’s $75,651 average cost to erase the current unrealized loss on the treasury. The company’s next filings will show whether it keeps buying through the drawdown, adds more cash to the USD reserve, or slows accumulation while preferred-stock dividends and debt interest remain the near-term funding test.
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