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Key Takeaways
- MSTR closed at $85.33 on June 25, down more than 80% from its November 2024 peak of $473.83, while preferred shares STRC fell to a record low near $80.84
- STRC dropping below its $100 par value shut down Strategy’s ATM preferred share program, cutting off a key channel for funding Bitcoin purchases
- Strategy sold Bitcoin for the first time ever, 32 BTC for roughly $2.5 million, to cover preferred dividend obligations, which total approximately $1.2 billion annually
Strategy Inc.’s common stock closed at its lowest level since early 2024 on June 25 while its preferred shares fell to an all-time low, closing the company’s at-the-market preferred share program and prompting its first-ever Bitcoin sale to cover dividend obligations.
How MSTR and STRC Work
Strategy trades under several symbols, but two are central to the current situation.
MSTR is the common stock. Because Strategy borrows to buy Bitcoin, the shares act as a leveraged proxy for BTC, amplifying price swings in both directions. There is no dividend. Risk sits at the top of the scale.
STRC, known informally as “Stretch,” is a different instrument. Strategy designed the Variable Rate Series A Perpetual Stretch Preferred Stock to hold near its $100 stated par value and pay a variable monthly dividend, currently set at 11.5% annually, targeting income investors who want Bitcoin-linked exposure without the volatility of the common shares. Preferred holders also rank ahead of common shareholders in a liquidation.
Both legs of that structure are now under strain.
Strategy Holds 20x More Bitcoin Than Its Nearest Peers
The Bitcoin treasury trade spans more than 150 publicly listed companies, but one firm dominates it. Strategy holds 847,363 BTC, according to data from BitcoinTreasuries.NET, roughly 20 times more than its two closest peers, Twenty One Capital at 43,514 BTC and Metaplanet at 40,177 BTC.
That concentration shapes how the whole sector moves. MSTR’s mNAV, the ratio of its stock price to the per-share value of the Bitcoin it holds, has dropped to approximately 0.70, meaning the stock now trades at a discount to its own Bitcoin holdings. The premium that once made issuing new equity to buy more BTC worthwhile has flipped to a discount.
Charles Edwards, founder of Capriole Investments, posted on X on June 24 that treasury-company buying built gradually through 2024 before spiking sharply around mid-2025, then collapsed. “Bitcoin treasury companies are the textbook bubble chart,” he wrote.
CryptoQuant data Edwards cited shows non-Strategy firms bought a combined roughly 1,000 BTC over a recent 30-day period, a 99% decline from an August 2025 peak.
STRC’s Drop Below Par Closes the ATM Program
When STRC held near par, Strategy could issue new preferred shares through its at-the-market program and funnel that capital into Bitcoin. That channel has closed. STRC fell to a record low of $89 in mid-June.
Strategy paused the ATM program because issuing shares below par is not economically viable. The stock fell further, trading around $80.84 on June 25 after hitting an intraday low of $79.85 the previous day, which was its lowest level since launching in July 2025.
The decline coincides with Strategy’s first-ever Bitcoin sale to fund preferred dividends. The company disclosed in early June that it sold 32 BTC for approximately $2.5 million in late May to cover STRC distributions. Strategy has since built a dedicated U.S. dollar reserve and has continued buying Bitcoin through other means.
Edwards compared STRC’s slide to TerraUSD’s 2022 collapse in a June 24 X post. Benchmark analyst Mark Palmer pushed back, describing STRC as “not a stablecoin” and the selloff as a market-driven yield reset.
The instruments differ structurally: STRC is backed by Strategy’s Bitcoin balance sheet, not an algorithmic mechanism. With approximately 104.89 million STRC shares outstanding, Strategy’s annual preferred dividend obligation runs to roughly $1.2 billion. The company held approximately $1.4 billion in USD reserves as of late June.
MSTR Falls More Than 80% From Its Peak
MSTR closed at $85.33 on June 25, its lowest closing price since early 2024. The stock peaked at $473.83 in November 2024 and has lost more than 80% from that high. The stock has fallen through multiple price levels, from $400 to $170 and now below $100, a range it held through most of 2024 and into early 2025. Bitcoin traded near $59,407 on June 25, down more than 4% on the day.
