Strategy (MSTR) Stock Plunges 8% While Saylor Hints at More Bitcoin Purchases

Key Takeaways

• The company maintains 847,363 BTC valued at approximately $50.8 billion, though with bitcoin hovering around $60,000 and an average purchase price of ~$75,646, unrealized losses exceed $13 billion.
• Executive Chairman Michael Saylor shared his customary “we’re gonna need more charts” message on social media, suggesting another bitcoin acquisition announcement could arrive as soon as Monday.
• MSTR shares plummeted to approximately $82, marking the lowest point since February 2024, while preferred shares STRC reached a record low of roughly $71 last week.
• For the first time ever, Strategy’s enterprise mNAV dropped below 1, indicating the market now assigns a lower valuation to the company than its bitcoin reserves.
• Industry voices including Ripple’s Brad Garlinghouse and analytics platform CryptoQuant have openly questioned Strategy’s financing approach, with CryptoQuant recommending a halt to additional purchases.

Shares of Strategy (MSTR) have tumbled to their weakest point since February 2024, hovering around $82 following an approximately 8% decline last Thursday. The company’s preferred shares, STRC, similarly touched a record low near $71 during the previous week.

Strategy Inc, MSTR

Despite the downturn, Michael Saylor remains unfazed.

Sunday morning saw Strategy’s executive chairman share the firm’s bitcoin purchase tracking chart on X, accompanied by his signature phrase “We’re gonna need more charts.” This mirrors his actions preceding verified acquisitions on June 7 and June 21. Market watchers anticipate a potential Monday 8-K disclosure.

The company’s bitcoin treasury comprises 847,363 BTC acquired at an average price of approximately $75,646 per token. With bitcoin currently trading beneath $60,000, the portfolio carries an unrealized loss approaching $13 billion. Industry publication The Block suggests the deficit could reach as high as $14 billion amid continued market weakness.

Strategy’s latest acquisition represented its most modest purchase in recent memory. A June 22 filing revealed a 520 BTC purchase totaling roughly $35 million, alongside a $300 million cash reserve addition that brought total reserves to $1.4 billion. Saylor has indicated these reserves provide approximately 10 months of runway for STRC dividend requirements.

Capital Structure Faces Headwinds

The dual pressures of declining equity values and discounted preferred shares have driven Strategy’s enterprise mNAV below 1 for the first time in company history. This measurement weighs the organization’s complete market capitalization — encompassing debt instruments and preferred equity — against its bitcoin position. When this ratio falls beneath 1, the company’s ability to raise additional capital through equity issuance becomes severely constrained.

STRC features an 11.5% annual yield and was structured to maintain trading proximity to its $100 par value. Current pricing stands around $74.57.

According to Block Research analysis, MSTR common shareholders effectively sit behind approximately $6.7 billion in convertible debt obligations and roughly $15.5 billion in perpetual preferred stock, positioning common equity as a highly leveraged residual interest rather than a straightforward bitcoin exposure vehicle.

The company executed its first bitcoin sale since 2022 on June 1, liquidating 32 tokens for approximately $2.5 million to satisfy a STRC dividend obligation, before returning to its weekly purchasing pattern.

Industry Voices Express Concern

During a Friday CNBC interview, Ripple CEO Brad Garlinghouse suggested Saylor’s organization “wasn’t focused on the right stuff” and argued Strategy’s methodology had negatively impacted broader market sentiment. He cited STRC’s trading discount as proof of structural vulnerabilities.

Blockchain analytics provider CryptoQuant issued a stronger statement on June 23, recommending Strategy immediately suspend acquisitions and prioritize cash accumulation. Research director Julio Moreno highlighted that annual dividend requirements have surged fourfold to approximately $1.2 billion, while STRC coverage has contracted from over seven years to roughly 14 months. CryptoQuant’s analysis suggests the company requires around $2.8 billion in reserves to restore two-year coverage adequacy.

Bitcoin traded below $60,000 on Sunday, approaching its lowest valuation since October 2024.

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