Key Takeaways
MSTR shares plummeted to their lowest point in more than two years, declining 46% in the last month to trade at $82.31
The company’s preferred shares (STRC) hit an all-time low of $71.40 — approximately 26% beneath their $100 nominal value
Yearly dividend payments on preferred shares have increased fourfold to $1.2 billion since early 2026
The firm’s enterprise mNAV temporarily dropped under 1.0, indicating the market assigns less value to the company than its bitcoin portfolio
Bitcoin tumbled to $58,000 on Thursday, significantly beneath Strategy’s average acquisition price of $75,000 per bitcoin
Strategy (MSTR) shares are facing intense downward pressure. The corporation, which holds more bitcoin than any other publicly traded company, finds itself trapped in a deteriorating financial situation with increasingly limited options.
Strategy Inc, MSTR
MSTR finished Friday’s trading session at $82.31, declining 3.54% for the day. This represents a 46% collapse over the preceding 30 days and marks the stock’s weakest performance in more than two years.
Bitcoin declined to $58,000 on Thursday before recovering slightly to approximately $59,560 by Friday. With Strategy’s average acquisition cost per bitcoin standing at roughly $75,000, the company faces substantial unrealized losses on its digital asset holdings, which are currently worth about $50 billion.
The core issue stems from Strategy’s preferred share issuances. Beginning in 2025, the firm started selling high-yield preferred securities to finance additional bitcoin acquisitions. The strategy appeared innovative initially. Today, it’s become a serious burden.
Yearly dividend commitments connected to these preferred securities have expanded fourfold since early 2026, now totaling $1.2 billion. At the same time, available cash has declined to approximately $1.4 billion — providing merely 10 months of runway.
This narrowing cushion is creating significant investor anxiety.
Preferred Shares Reach Historic Low
Strategy’s most popular preferred security, STRC, momentarily touched a historic low of $71.40 on Friday. These shares are structured to maintain a $100 valuation. They finished the day at $74.72 — still roughly 26% under their par value.
“They’re facing a significant challenge,” noted Jeff Dorman, CIO at Arca. “They cannot meet the obligations of every component of their capital structure.”
Digital asset research company CryptoQuant indicates Strategy must replenish its cash position to approximately $2.8 billion — sufficient to cover 24 months of dividend payments — before the preferred securities can realistically stabilize.
This means Strategy must generate liquidity. Urgently.
The available choices are all problematic. The company can release additional common shares, diluting current shareholders. It can liquidate bitcoin, undermining the fundamental investment thesis that defines the organization. CEO Michael Saylor stated in late May that he believed bitcoin had reached a floor at $60,000. Shortly afterward, the firm deployed most of its remaining cash to retire $1.5 billion in outstanding debt.
“They’re in a difficult position, and liquidation of some asset is inevitable,” remarked Sean Farrell, head of digital assets at Fundstrat.
Enterprise mNAV Falls Below Parity
For the first time in recent history, Strategy’s enterprise mNAV — a calculation that compares the company’s aggregate market capitalization, including debt and preferred securities, to its bitcoin reserves — momentarily dropped below 1.0 on Friday.
This indicates the market now assigns Strategy’s complete capital structure a value lower than the bitcoin it possesses. It represents a significant threshold that reflects diminishing market confidence.
Dorman characterized the predicament as “self-inflicted” and argued the optimal solution involves liquidating a substantial portion of bitcoin holdings. “When confronting a major problem, incremental solutions rarely succeed,” he explained.
Farrell suggested ongoing common stock offerings as the less destructive alternative. Both market observers cautioned that deteriorating conditions could trigger shareholder litigation.
Strategy isn’t experiencing this alone. Japan-based Metaplanet trades at an enterprise mNAV around 0.9. Nakamoto sits at 0.92. Strive, operating with a comparable structure, maintains a position above parity at 1.24.
CryptoQuant released its cautionary analysis on Wednesday. By Friday, the metrics had already deteriorated further.
