Bitcoin treasury company Strategy (MSTR) is trading at its lowest share price in over two years, with both its common stock and preferred shares under pressure as Bitcoin/USD slips to a two week low near $62,658. The convergence of a falling BTC price, a first BTC sale in three years, and mounting concern about dividend obligations on preferred shares has rattled investor confidence sharply.
At a Glance
- MSTR fell as low as $97.30 Wednesday, last seen below $100 on March 1, 2024
- Common shares are down roughly 20% over the past week and more than 38% over the past month
- Bitcoin is trading near $62,658, down 2.02% on the day and at a two week low
- Strategy preferred shares (STRC), designed to trade near $100, dropped to $84.35, off 3.4% on the day
- Strategy's cash reserves sit at $1.4 billion following STRC capital raises
| Price | 62658.4 |
|---|---|
| Day change | -1292.21 (-2.02%) |
| Volume | 12,417 |
Where the Pressure Is Coming From
MSTR was recently changing hands at $98.05, a nearly 5.5% decline on the session. That price level puts the stock back where it was in early March 2024, a period when Bitcoin itself was trading in almost exactly the same $61,000 to $62,000 corridor it occupies now. Strategy's shares peaked above $400 earlier in 2025, propelled by the post-election crypto optimism that followed President Donald Trump's more crypto-friendly posture. The reversal since then has been severe.
Bitcoin set an all-time high above $126,000 last October. From that peak to the current print near $62,658, the drawdown exceeds 50%. Several forces are amplifying the decline: outflows from Bitcoin ETFs, rotation into AI-related equities, and a Federal Reserve that has maintained a hawkish stance on rates longer than many market participants anticipated. Each of those headwinds compresses risk appetite, and BTC feels that compression acutely.
The BTC Sale That Changed the Narrative
Strategy's identity has long rested on a single, loudly stated premise: accumulate Bitcoin, never sell it. Co-founder and executive chairman Michael Saylor repeated that commitment for years. When the company disclosed its first BTC sale since 2022 around the start of June, the psychological damage to that narrative was immediate. Bitcoin had already been struggling to reclaim the $70,000 level, and the disclosure accelerated the slide.
As the largest corporate Bitcoin holder and the originator of the crypto treasury model that other firms adopted last year, Strategy occupies an unusual position. Its buying has historically provided a marginal bid for BTC during bull runs. The flip side is that any sign of forced or voluntary selling from Strategy carries outsized symbolic weight, signaling to the market that even the most committed accumulator has its limits.
STRC Preferred Shares Add Complexity
Strategy's STRC preferred shares were structured to trade near $100 and have been a key funding mechanism for Bitcoin purchases throughout 2025. Last week STRC dropped to a low of $82.53, and on Wednesday it was trading at $84.35, down 3.4% on the session. The concern driving that discount is straightforward: if BTC continues to fall, the firm may face pressure to liquidate Bitcoin holdings to meet dividend obligations on the preferred stack. That fear becomes self-reinforcing, as the prospect of BTC sales from Strategy weighs on Bitcoin's price, which in turn makes the dividend coverage math look worse.
Strategy has disclosed cash reserves of $1.4 billion, partly rebuilt after STRC's difficulties earlier this month. Whether that cushion is sufficient to service preferred dividends without touching BTC is a question the market is actively pricing in real time.
Broader Market Context
Bitcoin's correlation with risk assets has tightened again in this environment. Investors who might otherwise have allocated to BTC ETFs have been pulling back, with recent ETF flow data showing net outflows. The AI trade has absorbed substantial speculative capital that might otherwise have rotated into crypto. With the Fed offering no near-term relief on rates, the opportunity cost of holding a non-yielding asset like Bitcoin remains elevated. None of these are new dynamics, but their simultaneous presence makes a recovery catalyst harder to identify.
Frequently Asked Questions
Why did MSTR stock fall below $100?
Strategy shares dropped below $100 on Wednesday for the first time since March 1, 2024, as Bitcoin fell to a two week low and investors grew concerned about the company's first Bitcoin sale since 2022 and potential pressure on its preferred share dividend obligations.
What is STRC and why does it matter?
STRC is Strategy's preferred share class, designed to trade near $100, that has funded a significant portion of the company's Bitcoin purchases in 2025. It is now trading well below par at around $84, reflecting fears that Strategy may need to sell BTC to meet dividend payments.
Has Bitcoin been at this price level before?
Bitcoin traded in the $61,000 to $62,000 range in early March 2024 as well. Since then it surged to an all-time high above $126,000 last October before retracing more than 50% to its current level near $62,658.
What is driving Bitcoin lower right now?
The primary headwinds are outflows from Bitcoin ETFs, capital rotation toward AI stocks, and a Federal Reserve maintaining a hawkish rate stance. Strategy's first BTC sale since 2022 has also weighed on sentiment among investors who viewed the company as a committed permanent buyer.
What Comes Next for MSTR and Bitcoin
The 50% drawdown from Bitcoin's all-time high, combined with MSTR trading at levels not seen since early 2024, suggests the market is repricing both assets for a scenario where macro relief is not imminent. Strategy's $1.4 billion cash position provides some buffer, but the preferred share discount implies that investors are not fully convinced it is enough. Until BTC stabilizes or the macro picture shifts, MSTR remains a leveraged expression of whatever Bitcoin does next, with the added complexity of a dividend obligation that did not exist during the firm's last prolonged drawdown. Crypto's inherent volatility means conditions can reverse quickly in either direction.
